Brexit: Movement of Goods between Northern Ireland and Great Britain

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 24th October 2019 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

Perhaps I may help the Government because I do not think they understand their own deal, which effectively ends the UK’s single market by imposing different tariffs and rules between Northern Ireland and Wales, Scotland and England. The Prime Minister keeps insisting that there will be no checks between GB and Northern Ireland, but Steve Barclay had to admit to our own committee that exit summary declarations will be required between Northern Ireland and GB. Today’s words were “minimal interventions”. Well, Mr Johnson, that means “checks”. The impact assessment says that some 215 million import and entry or exit declarations will be needed at a cost of between £15 and £56 each.

The Answer we have just heard states that the withdrawal agreement will ensure,

“‘unfettered’ market access for goods moving from Northern Ireland to the rest of the United Kingdom’s internal market”.

However, if you look at the Bill—which some of us have to do—the word “unfettered” has disappeared and it allows for regulations to facilitate access to the market in Great Britain. Can the Minister come clean and admit that trade between Northern Ireland and Great Britain will now be like sending something to a foreign country?

[Lord Callanan]

First, the noble Baroness is wrong: there will be no tariffs on goods from Northern Ireland to the UK. We have agreed these arrangements because of the unique situation of Northern Ireland. As we were told extensively when the original customs proposals were produced that this would result in checks in Northern Ireland, we compromised for the sake of getting a good agreement, which we were constantly urged to do. We have recognised the unique situation of Northern Ireland: we have provided a consent mechanism for Northern Ireland’s elected representatives to decide whether they wish to take part in these arrangements. Importantly, it ensures that there are no checks in Northern Ireland between Northern Ireland and the Irish Republic, and that there are no borders. It is important to bear in mind that there are already checks because of the single epidemiological unit of Ireland—for example, on live animals going between Great Britain and Northern Ireland. We are proposing a small number of administrative checks and we will work with the European Union to ensure that these are as minimal as possible, if they are needed at all.

Brexit: Preparations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 21st October 2019 Lords Chamber

[Lord Callanan]

After my experience with Commissioner Timmermans, I do not think I am going to get into “Dad’s Army” analogies any further. We want to get Brexit done by 31 October. We have spoken about these issues and debated them endlessly and it really is time to get on with it.

[Baroness Hayter of Kentish Town]

It was said in the Statement and repeated in answer to a question that, following the advice of officials, this preparation should go ahead. I think I have the wording right. Will the Minister confirm whether that is simply the advice of civil servants, whom I respect greatly, or the legal advice the Government have been given?

[Lord Callanan]

My noble and learned friend Lord Keen in not in his place, but he would be telling me that I am unable to comment on legal advice that the Government are given, but it certainly follows a range of advice from officials and government.

Brexit

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Saturday 19th October 2019 Lords Chamber

[Lord Callanan]

The requirements of Section 1(4) of the Benn Act will be complied with to the letter. I am not going to take any more interventions from the noble Lord on this subject. I have addressed it many times. No matter how many times noble Lords ask me the same question, they will get the same reply, so I am not sure that there is much to be gained by carrying on.

[Baroness Hayter of Kentish Town]

Is the Minister going on to say what will happen in the Commons on Monday and whether the meaningful vote is due to be put there again on Monday?

[Lord Callanan]

It is a fast-moving situation. Seriously, I have been trying to conclude my remarks while listening to what noble Lords have been saying and trying to get updates on what is happening in another place as well. I believe that the leader of the House of Commons has addressed this matter but I do not want to say for certain. The noble Baroness, Lady Smith, is looking at her mobile and she might have more up-to-date information than I have.

[Baroness Hayter of Kentish Town]

We understand that it might be on Monday, but I think that the letter will therefore already have arrived in Brussels by the time the meaningful vote is taken on Monday.

[Lord Callanan]

I will take the noble Baroness’s word for that. I have not been updated on what has happened in another place. If noble Lords will permit me, I will go on to the main thrust of my remarks.

I reassure my noble friend Lord Bowness that all the legally required documents were laid in the paper office and that additional copies are available on GOV.UK. I hope that resolves his queries.

Brexit: Customs Controls at Holyhead

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 17th October 2019 Lords Chamber

[Lord Callanan]

The noble Lord makes an important point. He can be assured that we are working hard to make sure that there are zero queues at Holyhead. We want the new arrangements to be as seamless as possible so that the transport of perishable goods goes forward without any hindrance.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, yesterday we asked what would happen under the new deal about the length of the transition period, given that we originally asked for two years. I think that the Government the first time settled for 20 months; it now seems that, if the date of December next year is true, we would have only 14 months to put all this in place. Given that Holyhead is our second-busiest port, how does the Minister expect all the new checks on animal welfare, perishable goods, customs and VAT to be implemented by December next year?

[Lord Callanan]

The noble Baroness is correct that the end of December 2020 will be the end of the implementation period, should the deal be agreed—which I hope it will be. But there is of course the option to extend if that is necessary. But we are confident that the new arrangements can be put in place during that period, provided that there is good will on both sides.

Brexit: Preparations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 8th October 2019 Lords Chamber

[Lord Callanan]

I thank the noble Baroness and the noble Lord for their comments and questions. I say to my opposite number, the noble Baroness, Lady Hayter, that what I found interesting about her lengthy contribution—she had a number of clever debating points to make—was that she said nothing at all about Labour’s policy on Brexit. Of course, as we all know, Labour is against everything: against a deal, against no deal, against revoking Article 50. One of these days, maybe even in our debates, we may get to discover what the Labour Party is in favour of.

I will correct some of the points that the noble Baroness made. She said that it is unlawful to leave without a deal. That is not correct. Leaving without a deal is the legal—

[Baroness Hayter of Kentish Town]

I referred to leaving without a deal without the consent of the House of Commons.

[Lord Callanan]

The record will show what the noble Baroness said. I wrote down that she said it was unlawful to leave without a deal, which, as she has now correctly said, is not the case. That is now for the European Council to determine as a matter of EU law. She said that businesses would lose their data flow rights; that is also not true. We have put in place substantial mitigations through standard contractual clauses. The Statement said that this will enable the transfer of data. We are urging the EU to put in place a proper adequacy decision, which should be straightforward on the basis that our regulation is, in fact, identical. We hope that it will do that.

Lastly, the noble Baroness asked me to condemn—which I happily do—the embarrassing, incorrect tweet from Leave.EU. Germany is a close friend, neighbour and ally. That comment was appalling and I join her in condemning it.

Moving on to the points made by the noble Lord, Lord Wallace, I picked up very few questions in his contribution. He said businesses would not have different production lines, but many already do. If you want to export to the Chinese, Indian or US market, you already have to meet the different standards they have. However, I readily accept his point about non-tariff barriers. He asked about the single market being an exercise in deregulation. I think that would come as a shock to many businesses that have to meet its standards. He talked about the £8 billion cost. Yes, the cost is considerable, but much of that expense would be incurred anyway. Even if we left with a deal, we would still incur the costs of leaving.

Brexit: Divergence from EU Standards

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 3rd October 2019 Lords Chamber

[Lord Callanan]

The environmental standards that will apply initially will be those that we have imported into UK law under the EU withdrawal Act, but we have the flexibility to change these things in future. We are committed to setting up that environmental standards body and I am sure that we will want to do that as soon as parliamentary time allows.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, given that, according to the Minister, we will have different standards from the EU but that, as we heard yesterday, Northern Ireland will be aligned with EU standards and regulations for at least four years, I take it that there will be a border between Great Britain and Northern Ireland on standards. Is that right?

[Lord Callanan]

There are already checks, of course, because Ireland is a single epidemiological unit. Therefore, there are already checks in the Irish Sea on live animal exports, et cetera. If these proposals are accepted—we will see how the negotiations go—there will need to be a small increase in the number of checks done.

Brexit

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 2nd October 2019 Lords Chamber

[Baroness Hayter of Kentish Town]

Can the noble Lord explain what would happen if I, as a consumer, buy something and then travel to the other part of Ireland? Who will check the goods that I bought in one place and then took across the border?

[Lord Callanan]

We will discuss many of these proposals in detail tomorrow.

--- Later in debate ---

[Lord Callanan]

The situation is changing; that is why we need to agree new arrangements. We are leaving the European Union, the customs union and the single market, so clearly the arrangements will not be able to stay exactly as they are at the moment when we are part of those institutions. These proposals will allow us to move forward and focus on the positive future relationship that I believe is in all of our interests.

I have enormous respect for the noble Lord, Lord Empey, as he knows; he always makes insightful contributions in this House. He raised some important questions that I want to answer. We recognise that, for reasons of geography and economics, some things such as agri-food are increasingly managed on a common basis across the island of Ireland. Regulatory checks already take place on some goods moving between Great Britain and Northern Ireland. While the proposals would see an increase in some of these, there would be no need for traders to submit customs declarations and we would go ahead only with the consent of the Northern Ireland Executive and Assembly. In light of this progress, we must take the route suggested by my noble friend Lord Howell of Guildford and choose to continue to work together in a positive spirit. In that way, we will ensure the best possible outcome for the UK, so that we deliver on the instructions given to us by the British people.

The noble and learned Lord, Lord Goldsmith, the noble Lord, Lord Marks, and the noble Viscount, Lord Chandos, asked about the Benn Act. The noble Baroness, Lady Hayter, the noble Lord, Lord Wallace of Saltaire, and my noble friend Lord Trenchard referred to it as the “surrender Act”.

[Baroness Hayter of Kentish Town]

It was the sovereignty Act.

[Lord Callanan]

That is the political game as we all attach different names to it. The noble and learned Lord, Lord Goldsmith, also speculated on the use of the Civil Contingencies Act in relation to the extension. I assure the noble and learned Lord that there are no plans to use the Civil Contingencies Act in a no-deal scenario. I point noble Lords to the words of the Prime Minister on contingency powers. He said that,

“what we want to do is get a deal and there is no purpose in discussing the hypothetical scenario”,

around the Benn Act. Let me be clear and reiterate to all noble Lords, as I have said a number of times on this subject: we will of course obey the law.

--- Later in debate ---

[Lord Callanan]

My noble friend knows what the Government will do in the circumstances. We will obey the law, and we will obey the Benn Act, which is the law.

[Baroness Hayter of Kentish Town]

Some reference was made to it being a Private Member’s Bill. Some of us will remember Sydney Silverman’s Bill to get rid of the death penalty or the Bill of the noble Lord, Lord Steel, on abortion. They were Private Members’ Bills. Is the Minister saying that the origin of a Bill means that the Government may not have to agree with it? It is an Act of Parliament. Surely the Benn Act, just like any other Act, must be obeyed by the Government.

[Lord Callanan]

We will obey the law, as I have said on a number of occasions. The Benn Act is the law; we will obey the law.

Extension of Article 50

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 25th September 2019 Lords Chamber

[Lord Callanan]

The noble Lord has been reading the wrong newspapers. We are optimistic about the progress of the negotiations: there is an official-level delegation conducting technical discussions in Brussels today; the Prime Minister met with Leo Varadkar yesterday; the Secretary of State in my department met with Michel Barnier last Friday; and intensive discussions took place over a number of days last week. We are optimistic on getting a deal. We will leave the EU on 31 October.

[Baroness Hayter of Kentish Town (Lab)]

Reading tweets avidly, as I do, I see that somebody is still briefing that while the letter asking for an extension—as required in this Act—will be sent by the Prime Minister, it might be accompanied by another one saying, “But please don’t say yes”. Could the Minister confirm that there will be no attempt to circumvent the Act and that any legal advice from the Attorney-General will be double-checked with the noble Lord, Lord Pannick, for accuracy?

[Lord Callanan]

I am not sure we could afford his fees.

No-deal Update

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 3rd September 2019 Lords Chamber

[Lord Callanan]

My Lords, I first thank both noble Baronesses for their comments. I see that they have both been well rested over the summer and have returned in a suitably combative mood. I particularly welcome the noble Baroness, Lady Hayter, back to her place on the Front Bench where she deserves to be. She is a worthy opponent and I for one would have been sorry to see her go. I am delighted to see her back.

A number of points were raised. I will first address the comments of both noble Baronesses about Operation Yellowhammer. I said in the Statement, but will say again, that Operation Yellowhammer is a series of planning assumptions based on a reasonable worst-case scenario. It is not—I repeat, not—a prediction of what might happen. It exists to underline government planning; it is a series of assumptions put together through a lot of work by independent experts. It is constantly revised as new information comes to light and new mitigations are put in place. The Cabinet Office’s Civil Contingencies Secretariat does the same thing in a number of different areas—on flooding, for instance. As it is predicted that we will have various flooding events, worst-case scenarios are considered: what they may involve and what we can do to mitigate them. The same thing is done in a lot of other areas that I could mention.

So, that is what it is: we use Operation Yellowhammer for planning assumptions. What is more useful for people is to know how they can mitigate any possible effects of no deal themselves, what changes businesses can bring about et cetera. The noble Baroness quoted a number of pathways from that; it is appropriate to bear in mind that the figures she cited are not predictions but reasonable worst-case scenarios to help us in our preparations to mitigate them.

With regard to food, there are often interruptions to the supply chain of foodstuffs, whether by the various strike actions of ferry operators, fishermen or farmers in France, or because of inclement weather conditions. But the UK food supply logistics chain is solid and robust, and we are, of course, working with the various companies to make sure supplies continue uninterrupted. The same thing applies to medicines: the Department of Health and Social Care has been making extensive preparations. It has contacted every supplier of medicines and medical devices in this country. We have helped them to increase their stockpiles—they already hold considerable stockpiles but we have helped to increase them further against any possible disruption. We have secured additional transport capacity should that that be required, and we are working extensively with companies to ensure there is no interruption.

I was interested in the comments of the noble Baroness as it appears that the Labour Party is now in the position of being against everything. It is against a deal, against no deal, against revocation of Article 50, and mostly against a referendum. I know that the job of the Opposition is to oppose but I would like to think that eventually, at some stage, the Labour Party will decide to be in favour of something.

I turn to the questions from the noble Baroness, Lady Ludford. I have been called many things in the course of these debates but “Marxist” and “revolutionary” are new ones, if she was indeed referring to me in those terms. It is, however, to the credit of the Liberal Democrats that at least they are honest about their intention to overturn the result of the referendum. Many of us suspect that this is also the intention of the Labour Party but that it has not yet—with one or two exceptions—got around to admitting it.

The noble Baroness, Lady Ludford, also asked about free movement. Yes, as it currently stands under EU law, free movement will of course end on 31 October when we leave; the Home Secretary will say more about that shortly. With regard to negotiations, the noble Baroness has, as do I, extensive experience in dealing with various EU figures. She will know as well as I do that they have maintained religiously for months that not one dot or comma of the withdrawal agreement will be changed, yet when there is a different attitude from this Government and we make clear that we are prepared to leave anyway, suddenly President Macron and Chancellor Merkel demonstrate some movement. Private discussions and negotiations are continuing but the noble Baroness knows as well as I do that we are seeing some movement. Whether it will be enough we will have to wait and see, but we are working extensively and at pace to try to get a deal that we can put to the House of Commons so that we can leave with a deal. As I have said repeatedly from this Dispatch Box, that is our preferred outcome, but we have to be prepared to leave without a deal if it is not possible to obtain one.

[Baroness Hayter of Kentish Town]

Will the Minister agree to write in answer to the three very specific questions I raised, which he has not answered?

[Lord Callanan]

I thought I had answered the noble Baroness’s questions; if I have not, I will be happy to write to her.

EU: Law-making Process

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 1st July 2019 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, what is important about the European Parliament is that today is the last day of the old Parliament and tomorrow is the first day of the new one, and that the new Parliament has to give its consent to whatever withdrawal deal we agree to. What talks are Ministers having with the new make-up of the Parliament so that we have an agreement that will be acceptable to it?

[Lord Callanan]

We are constantly having discussions with old and new MEPs. Indeed, last week I was in Brussels talking to some of the old and newly elected Members of the European Parliament to put forward our position. Of course there is a bit of an interregnum while we have a leadership election but the noble Baroness is quite right to say that, when we have a withdrawal agreement to put to the new European Parliament, it will have to agree it—as will this Parliament.

Brexit: Discussions with the European Union

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 20th June 2019 Lords Chamber

[Lord Callanan]

No. [Laughter.]

[Baroness Hayter of Kentish Town (Lab)]

I wish it was that funny. Could the Minister undertake to explain to Mr Johnson that if there is no deal, there will be no transition period? If he does nothing else, he will have earned his place here as a Minister if he takes this message back, because Mr Johnson does not seem to understand it.

British Citizens’ Rights

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 18th June 2019 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, we welcome the Minister repeating that Statement, but I find it extraordinary that it took until last night for the Government to reply to Michel Barnier’s letter of 25 March. It is a real shame that they failed to implement this House’s view that we should have moved first, not last, on citizens’ rights. Now the Government have taken us to the brink of the very worst outcome for citizens, a no-deal exit that would leave UK nationals in the EU with no automatic right to live, own property, work, educate their children, use their driving licence or be covered by health and social insurance. Will the Minister undertake to ensure that there is no chance that we will leave the EU until and unless 1 million British people—by far the biggest national group affected by Brexit—have their legal and economic status protected wherever they live in the EU 27?

[Lord Callanan]

My Lords, on timing, as Members of the House know, European elections were held between 23 and 26 May, and government activity needed to respect the purdah period imposed in respect of them. We are working hard to engage with other EU member states about how citizens’ rights will be protected in all scenarios. There were additional aspects that we wanted to include in the withdrawal agreement, which the EU would not allow, such as reciprocal voting rights, so we are pursuing that bilaterally with other EU member states. We have concluded three such agreements to date.

Brexit: Cross-party Discussions

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 16th May 2019 Lords Chamber

[Lord Callanan]

As ever, my noble friend speaks wisely on these matters. I agree that not implementing the result of the referendum would be disastrous for our democracy. It must seem to people outside—going back to a previous answer from my noble friend Lord Gardiner—that leaving the EU is as difficult as eradicating Japanese knotweed.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it is not the question of whether we leave that is in front of us, but the question of how we leave. As we have kept saying, the withdrawal deal is not the right one to bring us out. We have now heard from Mr Fox, for example, that the deal we have in front of us at the moment has to involve checks at or near the Northern Ireland border, so the question is not whether or not we respect the referendum but that the Government have not come forward with a deal that is acceptable to most of his party or to mine.

Brexit: Free Trade Agreement

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 14th May 2019 Lords Chamber

[Lord Callanan]

The premise of the noble Lord’s question is wrong. The Government want to leave the EU. We are doing our best to deliver a deal that will enable us to leave the EU in a smooth and orderly fashion.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, given the letter that all those Tory leadership hopefuls have just written, saying that they would never countenance what this House would like—a permanent customs union—and as the Prime Minister seems to concur with that view, in what way were the Government willing to compromise in the talks that they offered to the Opposition?

[Lord Callanan]

We took the view that both sides would have had to compromise. The noble Baroness cited Conservative leader hopefuls so I will tell her what her leader, Jeremy Corbyn, said at the launch of his European election campaign: that a commitment to leave the EU was confirmed in the Labour Party manifesto and at the party conference. We seek to explore whether that really is the position of the Labour Party.

Brexit: No-deal Preparations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 20th March 2019 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I was about to say that the preparations are a bit like moving the proverbial deckchairs around the “Titanic”. The amount of money that the Minister has just mentioned sounds as if they were gold-plating them before they sank. We know that a no-deal exit would, at the very least, need a longer lead-in for business, which is currently in despair about all this dithering. Even with a no-deal exit business would need time to prepare for the new tariffs, checks, rules, permits and so forth. As we heard earlier today, however, that would clearly be under another Prime Minister, since Mrs May said that she would not agree to any extension beyond 30 June, and this afternoon Mr Tusk left open the possibility of a longer extension if the deal does not go through and we faced no deal.

We are in this position because the Government keep offering only either the Prime Minister’s failed deal or no deal, both of which have been rejected by the Commons. So we have to ask again: given the diplomatic and political crisis to which this Prime Minister has led the country, is it not now time to find a third route—to work to find a deal that is acceptable to Parliament and ends this no-deal farce?

[Lord Callanan]

Well, of course we have been endeavouring to find a deal acceptable to Parliament. We have spent two years negotiating it. But I repeat that it is the legal default, and until there is another deal in place, or another decision is taken, we will continue to prepare, because that is the responsible thing to do. I remind the Labour Party that it voted against the deal we have negotiated, and so far we have seen no constructive suggestions from the party as to what would replace it. I think Labour has said that it agrees with the withdrawal agreement, while continuing to vote against the deal.

Challenges to Validity of EU Instruments (EU Exit) Regulations 2019

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 14th March 2019 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I also thank the Minister for introducing this. As the noble Lord, Lord Beith, said, it is to correct something in paragraph 1 of Schedule 1 to the 2018 Act—which was perhaps a slightly erroneous judgment made at the time. It affects only a handful of cases, but nevertheless we certainly think that the ability to bring those cases is important.

I have a few questions. One arises from the last point made by the noble Lord, Lord Beith. My assumption is that this is a no-deal SI. Can the Minister confirm that, if we get a deal with a transition period—for the sake of this argument, if we get a deal there is bound to be a transition period—then the CJEU will, once we have amended the 2018 Act in the withdrawal and implementation Bill, have a continuing role in these matters? Can he also confirm that this is a no-deal SI, and that no deal is the only situation in which this SI would have a role?

If we have a deal, will paragraph 2.1 of the Explanatory Memorandum not be a bit misleading? It suggests that there will be no role for the CJEU. In a deal situation, there would be a role for it, not just in the transition but afterwards, because of the provisions concerning EU citizens’ rights. Can the Minister confirm that this SI would not be needed if we have a deal and a transition period? In fact, now that the House of Commons has voted against us leaving without a deal, perhaps the Minister could explain in what circumstances this SI would actually be needed. Is it correct that this SI would not be needed if we have a transition period?

My second question is absolutely not a trick question; it is asked out of my own ignorance. As the Minister explained, the courts will be mandated to inform the relevant Government of a case coming before them. Can the Minister inform the House whether there are any other instances in which any of our courts have an obligation to inform the Government of proceedings that are started before them?

Paragraph 10.7 of the Explanatory Memorandum recognises that we could find ourselves in the position—this point which has just been touched on—where some former EU legislation which has subsequently been ruled invalid by the CJEU remains on the UK statute book after we have left. Can the Minister outline how either his department or a successor department would monitor future CJEU rulings after Brexit to keep abreast of any such rulings which might be relevant to the UK statute book?

Finally, there is the important issue of compensation, which was only slightly touched on by the noble Lord, Lord Beith. The 2018 EU withdrawal act makes it clear that, after exit day, there is no right to damages under the current Francovich rules, except during a two-year grace period for cases that relate to events that occurred before exit day. Under the regulations being considered today, should our domestic courts find that any of our retained law is invalid under the sort of terms outlined, would there be a similar right to damages for two years similar to those allowed under the 2018 Act? That covers cases in which the event started before exit day, but even for cases which are pending on exit day—I think there are three at the moment—if it were found that those laws were invalid, would a Francovich-type compensation be available?

[Lord Callanan]

I thank the noble Baroness, Lady Hayter, and the noble Lord, Lord Beith, for their contributions, and I pay particular tribute to the noble Lord, Lord Beith, and the noble Baroness, Lady Taylor, who is not in her place at the moment, for the interest that they have taken in this important matter. We are extremely grateful for their contributions and for their engagement with officials—I know that the noble Lord has taken a close interest in this and I thank him for that.

As I set out in my opening statement, these regulations aim to ensure the effective delivery of justice as we leave the European Union. The regulations will do this by giving domestic judges a temporary jurisdiction to rule on validity challenges to EU laws in domestic courts after exit for cases that have begun before exit.

I will now deal with the questions. The noble Lord, Lord Beith, made some extremely valid points on what might happen if, after exit, the CJEU rules that EU legislation was invalidly made. Would this invalid legislation remain on the UK statute book? As he acknowledged, the short answer to his question is yes. Decisions made by the CJEU will not affect retained EU law. Even if the CJEU makes a decision to void regulation after exit day, as he pointed out, that law would remain on the UK statute book as retained EU law. This is because the EU withdrawal Act takes a snapshot of EU law as it stands on exit day. All law on the UK statute book at that point in time will be valid, as a result of it being made law under the EU withdrawal Act. After exit, it will be for Parliament to decide if and how to diverge from EU law.

I take the noble Lord’s point that, although unlikely, this may result in a law being declared void in European Union countries but not declared void in the UK. It is just a matter of policy disagreement. We would prefer that, after exit day, the Court of Justice of the EU is not given the power to strike down what will in effect be UK law at that point. However, I am sure that if such a circumstance arose, Parliament would want to take a look at the case, see if similar provisions should be made in the UK and see if the law should be changed or deleted.

In response to the noble Baroness, Lady Hayter, I can confirm that, in the unlikely event of this happening, we will of course closely monitor all pending cases that come back to Parliament with potential changes to any retained EU law. Building on that response, the rulings of the CJEU will not be binding on the UK. It would be for Parliament to decide whether to seek changes to mirror CJEU judgments.

The noble Baroness also asked about damages. Damages are already determined by UK courts. Nothing in this SI changes that scenario.

To answer both the noble Lord, Lord Beith, and the noble Baroness, Lady Hayter, the SI will be required in both a deal and a no-deal scenario. Therefore, if we agree a deal and pass a withdrawal Act, the effect of the SI will be delayed until the end of the implementation period.

The noble Baroness, Lady Hayter, also asked a good question about whether there are other instances where the courts must notify the Government of cases that are before them. The courts must issue a notice to UK Ministers and Ministers from the devolved Administrations in cases where it plans on making a declaration of invalidity. This is similar to the requirement under Section 5 of the Human Rights Act, when domestic courts issue declarations of incompatibility under that Act.

Without these regulations, no court in the UK would have the requisite jurisdiction to consider the validity of an EU instrument. Domestic courts would therefore find themselves at an impasse where a ruling on validity is simply not available, either domestically or from the CJEU. This would in turn prevent the effective delivery of justice. These regulations are intended to avoid such a clearly undesirable scenario. As I said in my introduction, my department has worked closely with the Ministry of Justice to make sure that the regulations are workable. The judges and Her Majesty’s Courts & Tribunals Service are well aware of these changes.

As I also said, these regulations provide that a Minister of the Crown, a Scottish Minister or a Welsh Minister or a Northern Ireland department may become a party to any cases concerning validity at any point. There are no impediments for the devolved Administrations to do so; they need only give written notice to the court. Again, this is in recognition of the fact that they may have an interest in the outcome of the case.

Although the number of validity challenges will be extremely small, it is none the less vital, as the noble Lord, Lord Beith, pointed out, that we ensure that justice can still be delivered in the few cases in which these regulations might apply.

European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) (EU Exit) Regulations 2019

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 4th March 2019 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

I do not know if it was the Minister’s own expression or whether “we are gathered together” was written for him, but I was expecting something a little more exciting after that. I congratulate him for getting through yet another speech, given that his voice is not quite back to its normal timbre. He is also employing what for me is another new phrase, “onshored”. Maybe the people behind him can give us a little clue afterwards about the difference between retained, repatriated and onshored and whether there are any more new expressions coming.

Like other noble Lords, I thank the Minister for trying to make sense of something quite complicated but I am afraid that I have a few questions nevertheless. First, the 2018 Act ends the supremacy of EU law over on UK law on exit day. It was there by virtue of the 1972 Act—as paragraph 6.2 of the Explanatory Memorandum reminds us. It ends because of the repeal of, I think, Clause 1 of the 1972 Act. However, assuming that we get a deal, and that this includes a transition period, some of this supremacy might have to continue through the transition period as we will continue to abide by EU rules then. How and when will the 2018 Act be amended to allow for this?

Secondly, paragraph 7.19 of the Explanatory Memorandum refers to the regulations amending Section 6 of the 1993 Act—to which the Minister referred—the provisions as to who is eligible to participate in the Committee of the Regions. Can the Minister let me know whether that is the only statutory change that will be required for us no longer to be on the committee? I have not noticed any reference to the committee elsewhere and as this refers only to eligibility and not, for example, selection, role, time limits or anything else about our membership, in domestic law or anywhere else. Can the Minister confirm whether anything else needs amending to make sure nothing else is left that would send people to that committee? Although not mentioned in these regulations, can the Minister also let us know whether any legislative changes about appointment, eligibility or anything else are needed with regard to our membership of what in my day was called the Economic and Social Committee, but which I know has a different name now?

My third question concerns the fact that the regulations now make good the absence, as we have just heard, from the 2018 Act of consideration of non-ambulatory EU regulations. This question may fall to the Minister’s noble friend Lady Goldie, because I think she dealt with this when we took the Bill through. There was quite a discussion about clinical trials at one point. We were concerned that, while the EU rules about clinical trials have been changed, they will not be operative—I think that is the word—on exit day. We were very worried, therefore, that because we would be taking over what was in operation on exit day, these new rules would apply across the rest of the EU after exit day but we would be stuck with the old ones, with enormous implications for whether we could participate in clinical trials that particularly affect orphan drugs and childhood illnesses. That lack of carryover was of concern. I am worried, although I think that particular issue got sorted by some clever intervention, about whether the introduction of these regulations covering non-ambulatory regulations addresses issues where things change over time and are different after exit day in the way we would want them to. Certainly the feeling was that we wanted to stay absolutely in line with EU regulations. I could not quite understand the difference between ambulatory and non-ambulatory sufficiently to know the answer to that.

My fourth question was raised by the noble Baroness, Lady McIntosh, and is about what happened when these regulations were dealt with in the Commons, where the Under-Secretary of State admitted that he did not know what his department might have been thinking. He has a good excuse: he did not do the Bill, because he was not there at the time, but this Minister, of course, did, so he might have a little more knowledge and has had advance notice since 21 February about why such references were overlooked. The noble Baroness, Lady McIntosh, asked whether it was by accident or design, and it would be useful to know. If it was by accident, we understand that, but it would be good to know whether there are similar examples. If it was by design, it would be interesting to know why it did not happen at the time.

Finally, I have a question which is not specifically on these regulations. To date we note that the Prime Minister’s spokesperson, instead of saying, “We will leave on 29 March” said only, “We want to leave on that day and we will work to try to achieve that”. Of course, as we know, the Prime Minister confirmed last week that, should MPs mandate her to seek an extension to Article 50 next week, legislation will be brought forward to amend the EU withdrawal Act’s definition of exit day. Any such regulation to amend exit day would be subject to an affirmative procedure and therefore require pretty swift consideration in both Houses. Can the Minister give us a little advance notice, as I am sure they are already preparing for that, about when an instrument would be laid, given the requirement on the length of time between being laid and being debated? Since it is already 4 March, I think he will understand why I pose this question.

[Lord Callanan]

First, I thank all noble Lords for their contributions. I shall deal first with the last question of the noble Baroness, Lady Hayter, and commend her for her ingenuity in bringing the subject up in this Committee. As she knows, under the EU withdrawal Act there is a provision for the Government to amend exit day by use of secondary legislation powers. There has been no decision to do that yet. We await details of the various votes that will happen next week, but we remain confident that we will be able to deliver a withdrawal agreement that the House of Commons can vote for with enthusiasm and therefore we will not need to table any references or any further secondary legislation, but if it is required, the ability is there. That is set out in the EU withdrawal Act. That is as far as I want to go with that at the moment in this forum.

Further Discussions with the European Union under Article 50 of the Treaty on European Union

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 27th February 2019 Lords Chamber

[Baroness Hayter of Kentish Town]

I know Cabinet responsibility has gone a little awry on that side, but we actually still have it. We have made it clear—Keir Starmer, Emily Thornberry and I have made it clear—

[Lord Callanan]

What about Corbyn?

[Baroness Hayter of Kentish Town]

On his behalf. We do not wheel him out on every occasion to make these speeches. I can call him in, if you like. We are quite clear what the questions are. It depends what happens down there but, assuming a deal goes through, it would be the deal that goes through against remain.

Brexit: Options

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 18th February 2019 Lords Chamber

[Lord Callanan]

It may well be the same thing. My right honourable friend the Secretary of State is in Brussels today; the Attorney-General will be going this week; the Prime Minister will also be going this week; and, just to add to the contingent, I myself will be going to Brussels later this afternoon.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I think I heard the Minister say that the default legal position if the Government cannot get a majority is to leave without a deal. That may be the default legal position, but it is clearly not the default moral position. Will the Government start thinking about the country and be more serious about looking for cross-party, cross-Parliament support for a deal that can command a majority in the Commons as well as the support of the country?

[Lord Callanan]

I am sorry to tell the noble Baroness that it is the default legal position. It is what Parliament voted for, it is what the legislation says and we are preparing accordingly. However, of course we do not want to leave with no deal; we want to leave with a deal, which is why we are intensively engaged in discussions to try to produce a solution that is acceptable to Parliament as a whole.

Brexit: Parliamentary Approval of the Outcome of Negotiations with the European Union

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 28th January 2019 Lords Chamber

[Lord Callanan]

I refer the noble Lord to the question that I answered earlier. We cannot completely rule out no deal because, as I have repeatedly said, that is the legal default—and that is what the Motion is asking us to do.

[Baroness Hayter of Kentish Town]

My Lords, it is true that in my winding-up speech I did say that we should denounce no deal, but the Motion that will be moved does not say that. It asks us to seek an agreement.

[Lord Callanan]

We are going round in circles here. I refer to the point that I made. Has somebody got a copy of the Motion?

Brexit: Negotiations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 24th January 2019 Lords Chamber

[Lord Callanan]

Of course we do not want no deal, if that was the implication of the question put by the noble Baroness, but that is the legal default option both under the Article 50 process in European law and now under British law, so we are preparing for that eventuality.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, any no-deal departure would put in jeopardy the people of Gibraltar, their right to self-determination and their 300 year-old relationship with the Crown. However, we read yesterday that the Spanish Government want to use the EU’s no-deal plans to push for the “decolonisation” of Gibraltar. This is the sort of risk that no deal brings. Can the Minister reassure us that Gibraltar is uppermost in the Government’s negotiations and that we will make sure that we do not depart without a deal?

[Lord Callanan]

Let me say to the noble Baroness that of course I can give her a reassurance that we are negotiating hard alongside Gibraltar. Gibraltar will leave the EU at the same time as the UK does. However, asking me to rule out no deal, as the Labour Party continues to do, is an impossible job. There are essentially three solutions to our current predicament: we can have a deal; we can have no deal; or we can have various forms of remain. The Labour Party tells us that it is against this deal, that it is against no deal and yet it says that it wants to respect the result of the referendum. The party really needs to decide what it is actually in favour of rather than what it is against.

Brexit: Support for Remaining in the EU

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 16th January 2019 Lords Chamber

[Lord Callanan]

I am sorry to disagree with the noble Lord. There have been a lot of opinion polls since the referendum result, so while researching this topic this morning, I looked to see whether any analysis of these has been done. Indeed, there has. Let me read what Professor John Curtice, who I think we would all agree is a respected polling analyst, said after analysing all the polls:

“In short, neither side in the Brexit debate has secured any ‘momentum’ so far as the balance of public opinion is concerned—and any claims to the contrary made by protagonists on either side of the debate should be regarded with considerable scepticism”.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, 17 million people may have voted in the referendum but in this House, a majority of 159 voted against the deal, as did a majority of 230 in the other House. Is it not time that the Government stopped being so dismissive of Parliament and of the votes and views here, and began to listen? Ruling out talking to the Opposition is irresponsible. Is it not time for listening and some serious talks?

[Lord Callanan]

Maybe the noble Baroness should stop being so dismissive of the referendum result in the first place. The Government have said that we take the opinion of Parliament extremely seriously. The Prime Minister will conduct discussions with party leaders and others to see what is acceptable in Parliament.

Air Pollution

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 9th January 2019 Lords Chamber

[Lord Callanan]

As I said, 13 member states are subject to these infraction proceedings. Were the backstop, or some level playing field provisions, to come into effect, they would not be enforceable by the European Court of Justice.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, according to the withdrawal agreement—I think it is in Annex 4, with which the Minister will be familiar—if there are any disagreements over air pollution commitments, they are to be agreed by the joint UK-EU committee. However, if those two sides cannot agree, unlike in other areas, there is no provision for an arbitration panel. Why is that?

[Lord Callanan]

It depends on whether the noble Baroness is referring to the implementation period or to the backstop. If she is referring to the backstop, I refer her to the answer I have just given to the noble Baroness, Lady Ludford.

[Baroness Hayter of Kentish Town]

I am sorry, but we are talking about enforcement, and the Minister has not answered the question on enforcement, as opposed to the rules.

[Lord Callanan]

I answered the noble Baroness, Lady Ludford. Were there to be a dispute over the application of the level playing field provisions, it would not be enforced by the European Court of Justice.

Brexit: Legislative Timetable

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 7th January 2019 Lords Chamber

[Lord Callanan]

I assume that the noble Baroness did not listen to the answer I gave earlier, and not for the first time the Liberal Democrats have got their figures wrong. We have already tabled more than 50% of the required statutory instruments, as we informed the two sifting committees before Christmas.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, the Government have wasted a full month by pulling the December vote and yet they are coming back with exactly the same deal. We still have seven Bills and only 600 SIs to deal with. Despite the urgency, the Prime Minister has today decided not to turn up in the House of Commons to explain what has been going on, which sounds like a Government in hiding. Can the Minister guarantee that the Government will heed the demand of 200 or more MPs, including some from his own side, to rule out no deal? Further, will he ensure that the Government will engage with business, with consumers and with the Opposition to find a way forward that is acceptable to the people of this country and to Parliament?

Brexit: People’s Vote

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 12th December 2018 Lords Chamber

[Lord Callanan]

The short answer to the noble Lord’s question is no. I do not know where he gets his figures from about the incredible number of messages, because I certainly have not seen any.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, 48 messages were sent about Mrs May and were able to lead straightaway to an election, so other votes are now awaited. We need votes in the other House on the withdrawal deal and a vote on this Government for their mishandling of Brexit, the NHS waiting lists, the universal credit shambles and much else besides. Will the Minister perhaps undertake to this House to advise Mrs May that the correct way forward for a Prime Minister who has lost control of the Cabinet, the Commons and the country is to call a general election?

[Lord Callanan]

I am sure that the Prime Minister will be very grateful for the noble Baroness’s advice. If I get the opportunity, I will, of course, pass on her fond regards.

Brexit: Economic Forecast

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 28th November 2018 Lords Chamber

[Lord Callanan]

I refer my noble friend to the Answer I just gave the noble Lord. We had a referendum on the subject and the country decided to leave the European Union. That referendum was authorised and legislated for by this Parliament, our notification of withdrawal was legislated for by this Parliament, and we have now ratified the withdrawal Act, which legislates for our withdrawal date of 29 March next year.

[Baroness Hayter of Kentish Town (Lab)]

Given that that analysis is based on the Chequers deal and not on the deal that has been negotiated with the EU, when will we have an economic analysis of the deal that is to be put in front of this House, and when will we get the legal advice?

[Lord Callanan]

The agreement of the political declaration will now be followed by negotiations on the legal text. We and the EU both recognise that this means that there could be a spectrum of different outcomes, and have agreed that it should be as ambitious as possible. On the legal advice, my understanding is that there will be a Statement in the House of Commons next week.

Brexit: Proposed Agreement

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 14th November 2018 Lords Chamber

[Lord Callanan]

I thank the noble Lord for his compliment but no, I do not agree with him. At the general election, both we and the Labour Party stood on manifestos saying that the result of the referendum should be respected. Indeed, the leader of the Opposition confirmed that last week. Over 80% of votes were cast in that general election for parties that said that they would respect the outcome of the referendum.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, does the Minister agree that, in addition to the 550 pages, the impact assessment should also be made available before this House debates the meaningful vote? Will he also ensure that our committees have time to predigest it so that we can benefit from their advice?

[Lord Callanan]

I have discussed this with the noble Baroness before, but following the conclusion of the negotiation and ahead of the meaningful vote we will make available to all Members of the House a full, reasoned position statement laying out both the political and legal position of the Government on the proposed withdrawal agreement, including any protocols that might be attached to it.

Brexit: Article 50

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 29th October 2018 Lords Chamber

[Lord Callanan]

As the noble Lord will be aware, the extent and length of the implementation period was agreed. It was green text in the withdrawal agreement. I understand that the possibility of extending it has been raised in the discussions in Brussels but no agreement has been made and discussions on such matters are continuing.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, since we know that Brexit is valued by the Government at only 50p—which is what they are going to produce on exit day—the question just raised about the WTO schedules is vital. We understand that only 14 of the deals that we have as part of the EU have so far been rolled over. The prospect of the crisis if we crash out without a deal is so serious that is it not time that the Government started paying more attention to getting a deal which is good for the country and acceptable to the House of Commons, rather than spending £150 million on consultants on how to deal with no deal?

[Lord Callanan]

We are able to multitask as a Government and we are doing both. We are concentrating all our efforts on getting a good deal but we are also mindful that it may not be possible to get a deal and therefore we are stepping up our preparations for no deal. Actually, the EU is doing the same. I really do not understand the position of the Opposition that we should do nothing at all to prepare for something that has a possibility of happening.

Brexit: Preparedness for EU Exit

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 25th October 2018 Lords Chamber

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

My Lords, extensive work to prepare for no deal has been under way for two years. Robust plans are in place to ensure that the border continues to operate from the day that we leave. We will always ensure that we have the necessary resources to keep the border secure. That is why we are recruiting over 600 Border Force officers to prepare for the day that we leave, in addition to the 300 officers who will be deployed by the end of 2018.

[Baroness Hayter of Kentish Town]

My Lords, the Prime Minister said no deal is better than a bad deal, but now the NAO says the border and HMRC systems needed under WTO rules simply cannot be implemented in time. Business cannot prepare; the car industry warns about the catastrophic impact that no deal would have on its manufacture; ports would be jammed, even without Mr Grayling’s flotilla; and medicines would be in short supply—to say nothing of the urgent legislation required in this House. Is it not irresponsible, even reckless, to continue to threaten no deal? Having got to the cliff edge and looked over, should the Government not be saying, “Better not”?

[Lord Callanan]

I am not sure what the noble Baroness is asking us to do here. We do not want no deal, but as a responsible Government, we need to prepare for it. Is the Labour Party saying that it would accept any deal given to it? We want a deal, we are working for a deal, we are negotiating for a deal, but putting in place preparations in case there is no deal is the responsible thing to do. That is what a responsible Government should do.

European Union (Withdrawal) Act 2018 (Consequential Amendments) Regulations 2018

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 24th October 2018 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I thank the Minister for introducing the first of what I hope is going to be a very small and select group of DExEU orders. Indeed, luckily for myself, for the noble Baroness, Lady Ludford, and for the Minister, I think the vast majority of these Brexit orders will be handled by other departments. However, I do wonder how on earth our colleagues covering those departments will cope, given the near 800 they will have to handle between now and March. They have not exactly got off to a great start: since the Act received Royal Assent on 26 June this year, a mere 71 have been laid, and only two have completed their passage through Parliament.

The delay is slightly hard to understand if the bulk are indeed to make relatively simple, perhaps technical amendments. Why then have we only seen such a tiny proportion of them so far? I assume that the pace will quicken in the coming months, but the tardiness to date means that while 45% of the time between Royal Assent and the supposed exit day has passed, only 9% of the likely total number of orders have so far been laid. Can the Minister therefore confirm that proper time will be allocated to those of our colleagues who will have to handle this to do the necessary scrutiny, that full consultation will take place with all outside stakeholders—this was something we discussed a lot during the passage of the Bill—and that feedback from those stakeholders will be available to our colleagues as they go through the various statutory instruments?

The sheer number of orders exposes the sheer scale of the legislative challenge facing Parliament. It also puts into perspective the Prime Minister’s claim that Brexit is 95% complete. As far as our work is concerned, that is clearly not the case. I have a slight problem with the 95% figure anyway. I am reminded of the man falling from the 10th floor of a building. After going past the first nine floors, he said, “So far, so good”. I hope that we are not facing the same crash that he did after the 10th floor. Aside from this particular order, I know that work is now gathering pace in the Secondary Legislation Scrutiny Committee: I can say only good luck to the committee.

Turning to the order in front of us, while it may be what the Minister calls “technical in nature”—which I think means “hard to understand”—it gives effect to decisions taken by both Houses during the passage of the withdrawal Act. As has just been mentioned, during debates on that Act, there was quite a bit of confusion over the new category of “retained direct EU legislation”. The provisions in Schedule 2, which respond to our Delegated Powers Committee, will, we hope, provide some certainty about the exercise of the relevant powers, particularly for our learned friends: I trust that they are clearer now about the significance of how those powers will be used. We certainly welcome the confirmation that the withdrawal Act powers to make secondary legislation will be exercised under the normal rules for SIs, with which we are familiar.

I want to raise one other point, absolutely unrelated to this one but within the broad remit of Brexit. Yesterday we read that Sir Bernard Jenkin said:

“While some SIs may need to be rushed through with less consideration, they can always be amended later”.


First, we simply must not rush these through. I am sure that is not the intention of the Government. On our Benches and those of the noble Baroness, Lady Ludford, it is not something we would want to happen. Secondly, and perhaps more substantially, given how important some of the SIs will be to maintaining standards on environmental, consumer and workers’ protection, and that they will include some quite important decisions about the supervision and enforcement of those standards, that comment from Sir Bernard Jenkin—I recognise that he is not a Minister—seems to fly in the face of the government assurances we received many times during the passage of the Bill that any such change to any of these standards or anything else would be by primary and not secondary legislation. We were very clear, I think, that secondary powers were going to be used for a lift and shift so the existing rules could be brought across but not for changes. Perhaps the Minister could confirm what I know he has said before—but now that we are into the SIs it is important for him to say it again—that from the point of view of the Government there is absolutely no intention to allow any backdoor changes to legislation in the way suggested by his honourable friend in the other place.

Of course, the order is based on the assumption that we will have a deal. Given the wishes of some of the Minister’s close friends that we should not have a deal and the inability of the Government so far to strike a deal, the risk of no deal looks alarmingly likely. All of us in this Room, because we are a bit sad, have read all the technical notices about what would happen in the event of no deal, but it is not clear what the task facing this House would be in those circumstances in relation to statutory instruments that would need to be got through very quickly. If the Minister has any information on that, perhaps he could share it with the Committee.

As your Lordships will have gathered, the order itself presents us with no problems. I hope that that will be the case for all the others that will come our way.

[Lord Callanan]

I thank the noble Baronesses for their comments and questions. I will try to deal with as many as possible and then write to them on any that I have not answered.

The noble Baroness, Lady Ludford, asked: are there limits to the ability of SIs to amend primary legislation? The noble Baroness, Lady Hayter, touched on this point as well. The consequential power is a standard power to make consequential amendments as appropriate—that famous word again, about which there was much debate during the passage of the legislation. These amendments may repeal or revoke but of course the use of that power will be strictly constrained. Provisions in the European Union (Withdrawal) Act speak about the scope of that power.

The noble Baroness’s second question concerned protocols to do with Croatia and Ireland. The answer is that even though the power to make the regulations is going, the regulations that were made under that power will carry on as appropriate. She also asked about the 1946 Act and why the SI applies only to powers conferred on Ministers and not to powers conferred on regulators. The SI makes consequential amendments to the Statutory Instruments Act 1946. The Act applies only to SIs made by Ministers, government departments, Welsh Ministers or the Privy Council. It is less common for legislative powers to be delegated to other individuals or bodies such as regulators, and where legislation confers on a regulator the power to make legislation it also makes special provisions as to how the power is to be exercised and scrutinised. In this case, the SI does not address those particular powers.

On the question of the consequential amendments made in the withdrawal Act for Scotland but not for England, Wales or Northern Ireland, the Act addresses a wide range of issues and impacts on the application of a large number of existing pieces of legislation. As far as possible at the time, those were addressed in the Act. However, it was also recognised that it would be impossible for the Act to identify and address every single amendment that was needed to existing legislation, and that is why at the time the Act conferred on Ministers the limited power to make regulations containing those amendments that are appropriate as a consequence of that Act.

The noble Baroness asked me what happens to the implementation of the Croatian and Irish protocols when the ECA is repealed. The protocol/treaty will still apply until exit day and in a no-deal scenario since those protocols/treaties presuppose EU membership and the protocol will become retained EU law unless repealed, which goes back to the point that I made earlier. So even though the power to make those regulations is being repealed, the regulations and Acts that were originally made under them still apply.

I turn to the comments from the noble Baroness, Lady Hayter. I totally accept her point about the considerable number of SIs that are required. I shall give her some numbers if that is helpful. As the drafting, legislation and negotiations have progressed, departments have had a clearer picture of what legislative requirements are needed by exit day. This has meant that we currently anticipate that the number of SIs might actually be fewer than the figure of 800 to 1,000 that was quoted and that I used many times during the passage of the Act. However, the exact number of SIs needed will depend on a number of factors and the total number is fluctuating; some are able to be combined into one while others will require a number of different individual SIs. Departments began laying Brexit SIs straight after Royal Assent and over 70 have already been laid. Our aim continues to be to be prepared for all scenarios. Again, without harming the negotiations, some SIs would be applicable in both deal and no-deal scenarios, some are applicable only to a deal and some are applicable only in a no-deal scenario.

We expect that the number of SIs being laid will significantly increase from this month onwards, and we are working closely with departments to try to ensure a manageable flow throughout so that Parliament has the proper time to scrutinise them and we have the critical legislation that is required in place by exit day. The secondary legislation programme is on track and we remain confident of the passage of the required number of exit-related SIs before exit day. I said there had been about 70; the exact number as of Friday 19 October is that 72 SIs have been laid or made, with 38 in July, 34 before the Recess, four in August, 10 in September and 19 so far in October. That includes the 43 proposed draft negatives that have been submitted to the sifting committee for consideration.

The noble Baroness referred to comments made by Bernard Jenkin in the House of Commons. I have not seen those particular remarks but I assure her that we have no intention of tabling SIs and then altering them later. We are doing a considerable amount of work to improve the quality of statutory instruments and to ensure that Parliament is appropriately informed and that the appropriate back-up documents, briefing documents and statements are provided along with the SIs. There is no question of back-door changes to legislation. Actually, we would have had the power to propose this particular SI as a negative procedure—it would have been legally possible—but we thought that as it potentially alters legislation of constitutional significance, it would be appropriate to be up-front and take it as an affirmative statutory instrument, so this is legislation by the front door. I hope she will accept that.

Once again I thank both noble Baronesses for this good debate and for their contributions. This statutory instrument aims to make consequential amendments to legislation in order to clarify how new powers and duties in retained direct EU legislation and new powers in regulations made under the European Union (Withdrawal) Act will work within our existing legal frameworks. The instrument will also repeal some provisions of primary legislation that are redundant due to the commencement of provisions in the European Union (Withdrawal) Act that were brought into force by commencement regulations made on 3 July 2018. The instrument will also make some transitional and savings provisions in relation to those repeals. With that, I beg to move.

Brexit: EU Commission

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 10th October 2018 Lords Chamber

[Lord Callanan]

I am afraid I am unable to give a precise timescale at the moment. We are negotiating. At this moment our negotiating teams are meeting in Brussels and we are confident of a deal. As soon as we have one that we can share with the noble Lord, I will be sure to let him know.

[Baroness Hayter of Kentish Town (Lab)]

I note that the Minister continues to use the words “implementation period”. Will he now admit that after the end of March we will still be in negotiations and it will be a transition period because negotiations will be carrying on and we will not have the sort of deal that simply needs implementing? Does he agree that in future it is about a transition not an implementation period?

[Lord Callanan]

No I do not agree with the noble Baroness. It is an implementation period. We expect to agree the withdrawal agreement and the future economic partnership in the next few weeks—in the autumn—and the implementation period will be about implementing that deal.

Brexit: No Deal

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 11th September 2018 Lords Chamber

[Lord Callanan]

Yes. The withdrawal agreement—about which we spent many a happy hour debating in this House—enshrined that in statute. When we have negotiated a deal, it will be put to a so-called meaningful vote in the House of Commons and it will also be debated in this House.

[Baroness Hayter of Kentish Town (Lab)]

Many people in this House will be thinking about the D-day celebrations next year, and of course they will be the first since we will have withdrawn from the great lesson of the war which led to the setting up of the European Union.

If there was to be no deal, it is hard to know what would be the most fearful thing. Would it be that 2 million UK citizens living in the EU had lost their status? Would it be a hard border in the island of Ireland? Would it be the sudden VAT rules, rules of origin and tariff checks at the border? Perhaps it will be the faces of the Brexiteers who meant only to blow off the wheels, not crash the whole economy. The Government are saying that Chequers is the only game in town, but they are throwing millions into preparing for no deal. Will the Minister take a message back to the Secretary of State that Chequers really has no chance of flying and that, by November, we have to have a deal that is acceptable both to Parliament and to our partners in the EU?

[Lord Callanan]

I can agree with the very last part of the statement made by the noble Baroness. Yes, we want a deal that is acceptable to Parliament and acceptable to our partners in the EU.

Brexit: Financial Settlement

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 11th September 2018 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

Does it? It would be quite nice to hear from the noble Lord whether he really means that it would fall away. But whether or not the Government will honour the commitment they have given, can he confirm that they will honour the promises they made to our farmers, and indeed the recipients of other EU funds—whether structural or research money—to maintain the full amount that they receive from Brussels at the moment?

[Lord Callanan]

Yes, we stand by our commitments.

UK-EU Future Relationship: Young Voters

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 10th September 2018 Lords Chamber

[Lord Callanan]

People have opportunities to record their opinion all the time. It is the nature of a democratic society. As people reach maturity, they vote in local council elections—or some do—and in general elections, and occasionally, one or two of them might even vote Liberal Democrat.

[Baroness Hayter of Kentish Town (Lab)]

The Minister’s colleague until very recently, Steve Baker, warns of a Conservative split if we stick to Chequers. Boris Johnson used his usual rather distasteful language also to undermine Chequers, and this morning, Simon Clarke of the ERG seemed to want anything other than Chequers, whereas the noble Lord, Lord Maude, in this House now supports the EEA. Whether the final deal is agreed by the Commons or by the people, is it not time that the Minister fessed up and admitted that this Chequers deal will simply never fly?

[Lord Callanan]

The noble Baroness has illustrated the breadth of opinion that there is on the subject in her party as well as in mine. All we can do as a Government is to set out a credible, realistic proposal. We are negotiating on that basis and waiting for a formal response from the European Commission. We will negotiate the best possible deal that we can for the United Kingdom and then, as we have said, we will put that agreement to a vote in the House of Commons and MPs will determine whether it meets with their approval.

Brexit: Parliamentary Processes

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 24th July 2018 Lords Chamber

[Lord Callanan]

We will discuss the White Paper later, and the noble Baroness will have a chance to ask further questions on it then. The Executive are accountable to Parliament. DExEU Ministers have given evidence to a broad range of committees on a total of 37 occasions, we have made 108 Written Statements in both Houses, and I think we spent about eight hours last night discussing the very issues that the noble Baroness refers to.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it is perhaps fitting that John Major’s papers are released today. They show how he had to take on, and indeed vanquish, the Eurosceptic Rees-Mogg—that is, Rees-Mogg the elder. Can we hope that today’s Prime Minister will show the same courage with Rees-Mogg the younger, and can the Minister take seriously the need for the Government to find a negotiating mandate as to how we exit that would find favour not just within the governing party but within Parliament?

[Lord Callanan]

As we have said, Parliament will get a vote on the deal. We will discuss the legislation to implement that deal later, and there will be a parliamentary vote on the issue. We hope that it will find favour with Parliament, and no doubt we will extensively debate the legislation to implement it.

EU Exit: Future Relationship White Paper

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 12th July 2018 Lords Chamber

[Lord Callanan]

I thank both noble Baronesses for their comments. Let me address some of the issues that they raised.

First, I am grateful to the noble Baroness, Lady Hayter, for her comments about the prompt delivery of the White Paper in this House. I am glad to see that our processes are more efficient. When I was preparing for appearing here, I was listening to the exchanges in the House of Commons, so I dashed to the Printed Paper Office here to check that they had sufficient copies to deliver to everybody. Noble Lords were busy collecting them at the time and said they had them available in good time; I am pleased she got hers and I hope the noble Baroness, Lady Ludford, received hers in time as well. There was some information that was released to the press under embargo, as is normal practice, but it was released only once the Secretary of State stood up—

[Baroness Hayter of Kentish Town]

My Lords, I am really sorry, but it was at 9 o’clock this morning.

[Lord Callanan]

My information is that the embargo was not allowed to be lifted before the Secretary of State rose to his feet.

In answer to her other questions outside the process of delivering the White Papers, I can confirm that it is our ambition to reach a comprehensive deal on services. Will it be acceptable to the European Union? I hope so. We approach the negotiations in good faith and we will engage positively. We hope there will be a positive reaction because we want to reach a deal and get an agreement.

The noble Baroness asked about freedom of movement. I confirm that freedom of movement will end and she should be delighted to hear that, seeing as both my party and hers stood on promises at the last election to say that we would end freedom of movement. We have said that, in line with the commitments given in many free trade agreements, we will seek to negotiate a mobility partnership with the EU, but that will not be the same as freedom of movement. This will cover things such as intra-company transfers, students, tourists and service providers, but it will not be the same as freedom of movement.

The noble Baroness made some quite good points about how to distinguish between goods and services; that is something we need to explore further with the EU, but a “good” is traditionally defined as something that physically crosses a border.

The noble Baroness asked about Gibraltar and the devolved Administrations. I can confirm that we did consult extensively with devolved Administrations, including sharing some drafts of certain parts of the White Paper where they were relevant to them. We did take on board and accept some of their comments.

I am not sure where the noble Baroness, Lady Ludford, was going with her fig-leaves analogy. Perhaps this was reference to the agri-foods being able to cross borders, so she will be delighted to know that, with the common rulebook on agri-foods, her fig-leaves will be able to seamlessly cross over the borders.

Again, in terms of delivery of the White Paper, I think I have answered that question from the noble Baroness, Lady Hayter.

I can confirm that we will be outside the common agricultural policy and the common fisheries policy, although we have said that we want to try and agree a common rulebook on agri-foods. We do not believe that will be a barrier. As the noble Baroness knows, the EU itself argues that CAP subsidies are not market distorting within the WTO, so there should be no problem in agreeing our own policies on environmental and CAP protections.

In terms of the common rulebook, we have been clear that we only want to agree a common rulebook in terms of those regulations that are necessary to enable frictionless border controls—or rather, no border controls because of a friction-free border.

In terms of free trade agreements, one of the benefits of the FCA partnership, if we can agree to it, is that it will allow us to set our own tariffs. I confirm that it is a priority of this Government to negotiate a free trade agreement with the US, and the noble Baroness will see references in the White Paper, as well as to our ambition to negotiate similar agreements under the Trans-Pacific Partnership.

In terms of financial services, we have been clear that we want to agree a close future relationship with the EU that preserves the mutual benefits of our uniquely integrated markets and protects financial stability. At the heart of this new partnership will be a set of binding, bilateral commitments that provides certainty and stability of access to each other’s markets and firms, while allowing the UK and the EU to exercise autonomy of regulatory decisions through their own domestic processes.

On the final point about accountability of laws, this will be a different arrangement. As the noble Baroness well knows, under the European Communities Act European law has direct effect in the UK; Parliament has effectively no choice about it. If we agree the common rulebook, then Parliament will have to adopt any future EU goods regulations, but it will have a sovereign choice about whether to do so. If it chooses not to, then we will have to accept the market consequences of that, but it will be a choice that this and future Parliaments will be able to make, so that is a different situation to that which pertains under the existing European Communities Act.

Brexit Transition: European Parliament Membership

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 7th June 2018 Lords Chamber

[Lord Callanan]

During the implementation period, we have agreed to establish a joint committee of representatives from both sides, which will be able to resolve concerns if and when they arise. Of course, we have also agreed a duty of good faith on both sides.

[Baroness Hayter of Kentish Town (Lab)]

Might I ask the Minister to quote Article 50 accurately in future? It does not say that we will leave two years afterwards, it says two years afterwards or such date as is agreed in the withdrawal agreement. Given that the Government seem to be quite unable to get that withdrawal agreement anywhere near ready, can the Minister also say—in agreeing to the wording I have just given—whether they have discussed perhaps reverting to appointing Members of the European Parliament, as we used to do, should that be necessary?

[Lord Callanan]

No, we have not agreed to that because we are leaving on 30 March 2019.

Brexit: Negotiations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 6th June 2018 Lords Chamber

[Lord Callanan]

No, we have been very clear that we are leaving the single market and the customs union, and we remain optimistic, like the EU, that we should be able to reach an agreement by October.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, this is rather a shambles, is it not? In fact, we are reading on the Channel 4 website that tempers within the Government are “fraying”. That is hardly surprising. The White Paper that David Davis said would be the,

“most significant publication on the EU since the referendum”,

is not appearing. I do not know whether the fact that the White Paper has not come out is worse for Parliament and the people here or for our negotiating partners in Brussels. Either way, we need to know what is going on. Will the Minister talk to his bit of the usual channels if I talk to mine and ensure that we have a proper debate on these negotiations immediately after the June summit?

[Lord Callanan]

When the noble Baroness said it was a shambles, I assumed she was referring to the Labour Party’s position on the EU, which, given the statements yesterday and by Keir Hardie on the radio this morning, is a disgraceful shambles—

UK-EU Security Partnership

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 17th May 2018 Lords Chamber

[Lord Callanan]

This is not my area but I am informed by my ministerial colleague that these matters have not been decided yet. I am sure he would be very happy to have a conversation with the noble Lord outside the Chamber.

[Baroness Hayter of Kentish Town (Lab)]

We are delighted with these proposals, even if they are more like a list. Given that mention has been made of the White Paper, can the Minister nudge his next-door-but-one neighbour, the Chief Whip, and ensure that we have a full debate in this House on both the slides and the White Paper?

[Lord Callanan]

I am sure that the Chief Whip has taken careful note of the noble Baroness’s comments.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Lord Callanan]

That is what has been agreed in the implementation period that we have agreed with the EU so far—but it will be the subject of legislation that we will be able to consider.

[Baroness Hayter of Kentish Town (Lab)]

Will the Minister therefore explain why our amendment to allow the ECJ to continue until the end of the transition—the implementation period—was not accepted by the Government?

[Lord Callanan]

Because there will be separate legislation to consider the implications of the implementation period as part of the withdrawal agreement and implementation Bill that we have already announced. We are trying to confine the purposes of this Bill to the originally announced process. I realise that lots of noble Lords want to use this legislation as a way to both influence the legislation and in some cases to prevent the process of Brexit. But we are trying to put forward revisions to the statute that will ensure that European regulations will continue to have effect in British law after the end of the period.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I am delighted to speak in support of the key Amendment 93, to which my noble and learned friend Lord Goldsmith added his name and which was moved so biblically and effectively by the right reverend Prelate the Bishop of Leeds. Of course, at that time, I had not only a brilliant legal adviser on my right, but a theological one—my noble friend Lord Griffiths—who has now left the Chamber. I said, “I have to have a biblical quote”, but I am afraid he has a sense of humour and said, “The people who were wandering aimlessly in the pre-Brexit wilderness were soon squabbling among themselves, ignoring the advice of their leader”, and so on. But I will leave my noble friend’s helpful comments for another time.

I say this particularly in answer to the noble and learned Lord, Lord Brown, and my noble friend Lord Adonis. This is an important and meaningful amendment because it would restrict the pretty wide powers given to Ministers in the Bill. That is why we need to pass it. We have on a number of occasions, on this Bill and the Nuclear Safeguards Bill, expressed our surprise that nowhere in the referendum process—in the immediate aftermath, nor in this legislation or any other—did the Government ever spell out that the Article 50 process automatically triggered our exit from Euratom. I will not repeat the costs and dangers of that eventuality given earlier debates on it, particularly the input at that point of the noble Lord, Lord Teverson.

However, equally unremarked on and unmentioned by the Government, or by the Brexiteers during the campaign, was the similar removal of the UK from a swathe of agencies, many of which, as we have heard, we helped to construct and all of which have served this country well. Colleagues will already know, from medical researchers who have been in touch, patient groups, health professionals and the pharmaceutical industry, of the risks of being outside the European Medicines Agency, quite apart from the loss of jobs and specialisms that are now moving to Holland. But the same could be said about the European Food Safety Agency, often referred to, but not today, by my noble friend Lord Rooker; the environment agency, emphasised by the noble Baroness, Lady McIntosh, and my noble friend Lord Whitty; the railways and aviation agencies, often referred to by my noble friend Lord Berkeley; the European Chemicals Agency, which has been mentioned; and, of course, Eurojust, suggested by the noble Baroness, Lady Ludford, and Europol, mentioned by the noble Lord, Lord Cormack.

The commonality is that any mention of those agencies in this House and beyond has included a plea for us to remain members, associates or partners with whichever such agency is in the frame. Sometimes this means following the same rules—as the Government have now accepted for clinical trials—to assist in monitoring; for safety; for easy and rapid transport, as for medical isotopes; to facilitate trade and exchange; to enable skilled persons to undertake checks or repairs; or, as my noble friend Lord Haskel said, to guarantee safe products for users and consumers.

For some of the agencies it might mean paying money in, as the Prime Minister acknowledged. For some it might mean harmonising assurance, governance or penalties for rule-breaking. But for all it will mean a willingness to adapt and respond to requirements, usually simply to maintain our existing rules and practice. What is clear is that, given the wide powers in the Bill for Ministers, we must ensure that none of those powers is used to frustrate our continued involvement with such agencies, whether because, for example, we set different sanctions for breaches, raise fees or charges in a different way that makes it difficult to move along in their way of working, or apply variant rules or any other similar change. That is why it is critical to circumscribe the powers in the Bill so that they cannot be used to prevent us having necessary EU rules or ways of working that would frustrate our participation in any of these agencies. We do not want the powers to be used for that reason, hence the very simple amendment.

The noble Lord, Lord Hannay, had it right: the Bill should not be used to frustrate the intention, should that be the Government’s wish, to stay in these agencies for the good of the whole country. It is, as the right reverend Prelate the Bishop of Leeds said in his introduction, entirely in line with what the Prime Minister said in Mansion House and it would allow this country to continue such relationships where that continuation is in the national interest.

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

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

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

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

--- Later in debate ---

[Baroness Hayter of Kentish Town]

My Lords, I will restrain myself from entering into a longer debate on this issue. I agree with my noble friend Lord Grocott that this is an important Bill, but it will also affect the negotiations, and part of that will be affected by the timetable.

It is interesting that at various times when we have discussed the promised vote on the final deal—it is not just a matter of leaving but of our future relationship with the EU after we have left—the Minister has said that he hoped that the vote, in both Houses, would take place before the European Parliament has had its say, but that he could not definitely promise that it would, because our parliamentary timetable might not be flexible enough to fit in with that of the European Parliament. I cannot say that I accept that argument, because after all, we control our business and when we have votes—not necessarily how late at night they happen, but effectively we control our timetable. However, if the Minister was correct in the assumption that the European Parliament’s vote might not be at a predictable time—it may be delayed because talks are still going on—it may suddenly be brought forward.

Here, I will answer the point raised by the noble Lord, Lord Butler. It seems essential that the deal has to be agreed before April, when the European Parliament will go into recess, because under Article 50 the deal has to be agreed and have the consent of the European Parliament. If the European Parliament is to recess, adjourn or prorogue before its elections, the deal has to get consent before then. Therefore, there is a timetable, and it has to go before the European Parliament. I have had various legal advice about what happens if the European Parliament does not give its consent—it seems quite complicated—but certainly Article 50 says that it has to give consent. Therefore, the negotiations could go on a bit later than everyone wants, and the European Parliament will have to prorogue for its own elections and will have no authority thereafter. The date on which we leave could be fixed by the words in an Act of Parliament which will be passed in August or whenever, some months after those events, and that seems a very unhelpful position for our negotiators to be in.

I am sure that there will be late-night sessions and lots of consultations, with people ringing back for instructions as the negotiations go on—there are people who have been through all this. I hope that we have trained the Minister well in coping with late nights here, because he may well have more of those, but there could be very long nights as the negotiations go on. If one side—our negotiators—were curtailed by a strict date in the Act, that would put us at a disadvantage. The other side is not so constrained. The European Parliament can meet at very short notice when a decision has been taken.

However, I interpret Article 50 slightly differently. It says:

“The Treaties shall cease to apply to the State in question from the date of entry into force of the withdrawal agreement or, failing that, two years after … notification”.


So, without having to go to the Council for a unanimous decision, the withdrawal agreement could contain a leaving date of a week or two weeks after the two-year period, which would allow the last-minute arrangements to be made. If that is what the withdrawal agreement specifies, if that suits all the parties and if our Government would like to sign up to it, it would seem silly not to be able to do that.

It is important that we enable the negotiators to get the best possible deal, setting out exactly how we leave and exactly what our future terms of trade will be. If the amendment is passed, it will remove the straitjacket that the Government inserted at the behest not of the negotiators but of certain ardent Brexiteers. Let us remove that straitjacket, make the task easier for the negotiators and reflect what our own EU Committee said:

“The rigidity of the Article 50 deadline of 29 March 2019 … makes a no deal outcome more likely … enshrining the same deadline in domestic law would not be … in the national interest”.


I am sure that the Government want to put the national interest first and I certainly believe that this House will want to do so. Therefore, we strongly support the amendment moved by the noble Duke, the Duke of Wellington, and we urge everyone to go into the Lobby behind him.

[Lord Callanan]

My Lords, I thank all noble Lords for their contributions to this debate. Exit day has been discussed at length throughout the passage of this Bill. Set dates such as this are often crucial to the functioning of any legislation, but I would like to take this opportunity to remind noble Lords of the particular importance of exit day in this Bill.

Exit day is the moment in time when the European Communities Act is repealed. It is the point at which EU laws are converted into UK law, when the deficiencies in retained EU law emerge and when a range of other effects are triggered under the Bill. However, I reiterate that exit day within the Bill does not affect our departure from the EU, which is a matter of international law under the Article 50 process, as my noble friend the Duke of Wellington and the noble Baroness, Lady Hayter, made clear. What it does affect, however, is whether we leave the EU in a smooth and orderly fashion.

The definition of exit day, and how it is to be set out, has been amended significantly since the Bill was introduced to the other place by my right honourable friend the Secretary of State for Exiting the European Union on 13 July last year. My noble friend Lady Goldie has previously described the sequence of events which led us to the current drafting and I will not test the patience of your Lordships by repeating the arguments she made in Committee. What I will say, however, is that, crucially, the Bill left the other place reflecting the reality of international law under the Treaty on European Union. I see no reason, therefore, to change the Bill any further. The final drafting also reflected the concerns of Members of the other place who had been on both sides of the referendum campaign. That fact sits at the core of my opposition to Amendments 74, 95 and 99 in the name of the noble Duke, the Duke of Wellington.

As has been stated on many occasions during Report, this House reviews the legislation sent to it by the other place and highlights—often very well—areas where it does not think due consideration has been given. This point was well made by the noble Lord, Lord Grocott, as a leaver from the West Midlands. As a leaver from the north-east, also an area underrepresented in this House, I have considerable sympathy with his arguments. I therefore cannot why these amendments are seeking to restore something like the original drafting of the Bill when that drafting was considered at great length, on many occasions, and was rejected by the other place.

I also do not agree with Amendment 96 in the name of the noble Lord, Lord Wigley. The Bill is designed to provide continuity and certainty in domestic law as we leave the EU. This must be true in a scenario where we have a deal with the EU, but it must also be true in the unlikely event that there is no agreement between the EU and ourselves. While this is not what anybody on either side is hoping for, it would be irresponsible and out of keeping with the remainder of the Bill not to prepare for that unlikely event. In that circumstance, it would be vital that the Bill did not make reference to concepts which are contingent upon a successful negotiated outcome, such as an implementation period. That would prevent the Bill achieving its objective as agreed at Second Reading, because in that scenario further primary legislation would be required to alter exit day and provide for an operable statute book. Even in the Government’s preferred scenario of a successfully negotiated withdrawal agreement, including of course an implementation period, the noble Lord’s amendment presumes that no substantive provisions of this Bill will be required until the end of that implementation period.

While I do not want to be drawn into a discussion about the legal construction of the implementation period, which will be a matter for the withdrawal agreement and implementation Bill—I have no doubt we will have great fun in our opportunity to consider that—I do not think that the noble Lord can be certain in his assumption. This is the real issue with the noble Lord’s amendment: it attempts to use this Bill to legislate for the implementation period. But the Government have been quite clear that the implementation period will be a matter for the withdrawal agreement and implementation Bill once we have agreement. This Bill is deliberately and carefully agnostic about whatever deal we strike with the EU, prejudging neither success nor failure in negotiations.

Of course, we hope and expect to be successful in these negotiations, and our continuing progress demonstrates good movement towards that goal. I hope that noble Lords will reflect the compromise reached by the elected House, and therefore I respectfully ask the noble Duke to withdraw his amendment.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

It is not a shame. What were the words? “Kindness, care and consideration”. It is because we share the objectives of that best possible deal that we should make sure that our mandate and agreement serve the whole country, the economy and the regions. At this stage, we should not support one particular approach to that. I urge the House to abstain on the amendment.

[Lord Callanan]

My Lords, before I address the amendment I will say a brief word, if the House will permit me, about the previous group, which we did not get a chance to speak on. I did not have the opportunity earlier to announce that the Government intend to consult further on ambulatory references—about which I am sure noble Lords are concerned—particularly in relation to contracts. Subject to the outcome of that consultation, further legislation might be brought forward under the consequential powers in the Bill.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Lord Callanan]

I am not going to dictate what Parliament might want to do with that Motion or any other. Members will be free to table amendments to the withdrawal agreement and implementation Bill.

[Baroness Hayter of Kentish Town]

Will the Minister answer the other question: will it be binding on the Government?

[Lord Callanan]

Of course it will be binding on the Government. If Parliament rejects the deal we have negotiated, of course it cannot be implemented.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

It may or may not be, but that will be an issue for then. The issue for now, surely, is the negotiations that are taking place and the maximum input and effect that we can have on them.

We need to use every bit of our persuasive powers to change the objectives that the Government seem to have set their red lines on. Not everyone will agree with me on that, but that is where the public debate should be at the moment. I have heard the arguments for a referendum. This is not the time to get the public debate back on to that rather than on the subject of the negotiations. I urge that we abstain on this amendment.

[Lord Callanan]

My Lords, I do not know if the noble Countess, Lady Mar, is in her place but I note that the Companion to the Standing Orders makes it clear that:

“Arguments fully deployed … in Committee of the whole House … should not be repeated at length on report”.


I therefore face a challenge today, as did my noble friend Lord Bridges during the passage of the European Union (Notification of Withdrawal) Bill, because we seem to have heard it all before. As he said then and I have said and the Prime Minister has said, our position remains unchanged from the time of the referendum that we will respect that result.

When voters walked into the polling booth on 23 June 2016, they were asked:

“Should the United Kingdom remain a member of the European Union or leave the European Union?”.


This question was put to the public as a result of an Act of Parliament passed by both Houses. The question was not, “Should the United Kingdom negotiate to leave the EU and put the terms of that departure to a further referendum?”—a point that was well made in the excellent speeches of my noble friend Lord Faulks and the noble Lord, Lord Grocott, on the Labour Benches.

Some noble Lords—possibly the Liberal Democrats—may wish that that had been the case, but it was not. The public, in the largest democratic exercise ever conducted in the United Kingdom, voted on that simple question and that simple question alone—a point made well by my noble friend Lord Shinkwin. Both sides in the referendum campaign pledged to respect the result; once the outcome of the vote was clear, that meant to leave the European Union. The public voted to leave and they expect the Government to deliver on that, not try to judge what they may have wished the question was. This promise was repeated in last year’s general election in the manifestos of parties commanding more than 80% of the vote and to which more than half the noble Lords in this House are affiliated. It is on the basis of that commitment that we are here today: the Bill is a necessary component of delivering a successful Brexit. Fundamentally, it is about providing legal certainty, for businesses here and abroad, and for citizens in both the UK and EU—which was also a point well made by my noble friend Lord Faulks.

How would the amendment fit in with that purpose? Inserting a requirement for a second referendum would have exactly the opposite effect. This House will be all too aware that a second referendum would require a further Act of Parliament. What would that process look like? What would the question be? What conditions would be attached? Would there be provision for a further referendum if the Liberal Democrats still did not like the answer? How long would it take to get the referendum legislation through the House and what would happen to business, industry and citizens in the meantime?

Furthermore, while we in this House, and in the other place, debate these issues, businesses and individuals will suffer from the uncertainty that it will bring, when what they really want is a continuation of the certainty provided by our successes in the negotiations so far. There would be legal challenges, I am sure, and perhaps clamour for a third referendum, maybe even a fourth—points well made by the noble Lord, Lord Howarth, and my noble friend Lord Dobbs. If we commit to continually looking over our shoulder, to holding a second referendum, we cannot be a strong or reliable partner in the negotiations.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

My Lords, in one way, it is difficult to imagine a more pertinent week for this amendment to arrive in this House. It is true that perhaps it would have been better if we had included it in the Article 50 Bill: if when, as we authorised the Government to fire the starting gun on our departure from the EU, we had laid down at that stage the requirement for the negotiating mandate which would have set out our future relationship with the EU and asked for it to be approved by Parliament.

As it turns out, that would have been good for the Government as well as for the country, as it would have forced the Prime Minister at that stage to fashion a mandate to find favour with Parliament: avoiding a further year of disputes, lobbying and, dare I say, manoeuvring within her Cabinet. Indeed, the Government’s dithering and internal party arguments have held up parliamentary work on, for example, the Trade Bill, with 12 wasted weeks’ delay on a crucial Commons vote—the equivalent of a 10th of the time allocated for the Article 50 negotiations. Such uncertainty has left the EU scratching its head as to what exactly the UK wants.

It must also drain the Prime Minister’s time and energy as she seeks to reconcile the irreconcilable within her party rather than putting the country’s interests first. The prime, perhaps the central, job of any Prime Minister is to defend and promote her country’s interests. That is what she should be doing, rather than acting as a nursery teacher controlling unruly youngsters.

That behaviour rolls on. On the one side, she is under huge pressure from within her Cabinet to abandon even consideration of a customs partnership, with, we read, senior Brexiteers “preparing for a showdown” at this week’s Brexit sub-committee. Incidentally, the showdown is in part led by Liam Fox who, in 2012, called for a new relationship with the EU based on,

“an economic partnership involving a customs union and a single market in goods and services”.

At the same time, David Davis was saying that his preference was to remain in the customs union. So their former selves were looking towards that, and your Lordships’ House, by its view on the customs union, has expressed a fear about a physical and regulatory break from our largest trading partner.

We also hear that from businesses, trade unions, environmentalists, those speaking about Northern Ireland and, possibly, from a majority in the House of Commons, where, in due course, there will have to be a crunch vote on the shape of the customs union relationship, in particular. The Prime Minister will not be able to postpone that indefinitely. As the saying goes, “You can run, but you can’t hide”. Part of the reason that that is happening now is because we did not have parliamentary approval for the negotiating mandate at the start of the process.

The amendment demands that the articulation of our future relationship—what the Government want to achieve from the negotiations—should be spelled out and put to Parliament. Perhaps the noble Lord, Lord Hamilton of Epsom, is right in what he says about what that will spell out and what the mandate would include, but why not have it endorsed by Parliament?

We support the amendment, which would ensure that that negotiating mandate, which would cover trade and our future relationship with the EU, is approved not just by what is a rather divided Cabinet at the moment, but by Parliament, which is where the decision should lie.

[Lord Callanan]

My Lords, I begin by making it clear that Parliament has a critical role in scrutinising the Government’s negotiating position. It is our responsibility as a Government to provide both Houses with ample opportunities for scrutinising both the approach we are taking to exiting the EU and any implementing legislation—and we are doing so.

The Secretary of State for Exiting the EU has provided an Oral Statement to the House after every negotiation round. He has provided evidence to the Select Committee on Exiting the EU five times, and has appeared before the Lords EU Committee four times. On 29 occasions to date, DExEU Ministers have given evidence to a wide range of committees, from Environmental Audit to Science and Technology. As my noble friend Lord Hamilton observed, the Prime Minister has laid out her intentions for the future economic and security relationship between the UK and the EU in several speeches, most recently in those made in Munich and in London’s Mansion House. Her intentions were also made clear in the seven future partnership papers, where the Government set out their negotiating objectives across a number of areas, including customs, science and innovation. Government Ministers have made a series of speeches laying out their intent for various aspects of the future relationship between the EU and the UK.

The scrutiny received during these parliamentary appearances, and in the multitude of reports from the committees of this House and the other place, have been of great value, and have done much to help inform the Government’s work so far. There has also been a wide range of engagement activity by government with key stakeholders across business, civil society and other interested groups. While there are some who think that Parliament should have a greater role in setting the terms of our negotiations, we simply cannot hold up the already tight negotiating timeline by providing for a further approval process prior to negotiations ending. It must be for the Government, not Parliament, to set our goals for the negotiations on the UK’s exit from the EU, and to conduct them.

As I said in my response to the first amendment that we considered today, the Government have been clear from the start that Parliament will get a vote on the final deal, when Parliament will have the final say on the withdrawal agreement and terms for our future relationship, as soon as possible after the negotiations have concluded. Only if Parliament supports that Motion will the Government bring forward the withdrawal agreement and implementation Bill to give the withdrawal agreement domestic legal effect. The Government will then introduce further legislation where it is needed to implement the terms of the future relationship in UK law, providing yet further opportunities for proper parliamentary scrutiny.

Debates in this place and the work of the committees of both Houses represent valuable forums and opportunities for parliamentary scrutiny, and we have used Parliament’s input to shape our approach to negotiations so far. Indeed, I conclude by quoting some wise words from our own House’s EU Committee’s fourth report of 2016-17, titled Brexit: Parliamentary Scrutiny:

“Parliament should not seek to micromanage the negotiations. The Government will conduct the negotiations on behalf of the United Kingdom, and, like any negotiator, it will need room to manoeuvre if it is to secure a good outcome”.

My noble friend Lord Boswell will no doubt not let me ignore the fact that the report goes on to call for the avoidance of “accountability after the fact”, but I hope that the House will agree that the right response is not to go to the extremes of micromanagement by Parliament. I hope, therefore, that the noble Lord feels able to withdraw his amendment tonight.

--- Later in debate ---

[Lord Callanan]

My Lords, I understand the intention of the noble Lord, Lord Wigley. He is concerned, as are many other noble Lords, with the consequences of failing to reach an agreement with the EU or the equally unpropitious scenario of Parliament rejecting the terms of a deal that has been reached. The noble Lord’s amendment goes even further than that tabled by the noble Viscount, Lord Hailsham, in that it dictates, rather than leaves open, what should happen next in the event that the UK and the EU do not reach an agreement on the terms of our withdrawal; or if Parliament does not approve the terms of the withdrawal agreement, our notification under Article 50 should be revoked.

As I have explained already today, it is not constitutionally acceptable for Parliament to dictate the conduct of diplomacy in that way. Moreover, we are confident that we will reach a positive deal with the EU which Parliament will support. This is indisputably in the mutual interests of both the UK and the EU. Parliament will have a clear choice: to accept the deal we have negotiated or move forward without a deal. Ultimately, if Parliament chooses to reject the deal then we will leave the EU with no deal in March 2019.

The Government have always been clear what the outcome of failing to reach a withdrawal agreement would be. We are leaving the EU and will leave with a deal or without one. It is not a scenario that anybody relishes, least of all me, but it is also not one that should come as a surprise. The UK voted to leave the EU, Parliament voted to trigger the notification of withdrawal Act and the Government are honour bound to deliver on that instruction. We have been clear throughout that as a matter of firm policy we will not seek to revoke our notice under Article 50.

I therefore hope that the noble Lord will withdraw his amendment. I cannot give any false hope that I will reflect further on this issue between now and Third Reading, so if the noble Lord—

[Baroness Hayter of Kentish Town]

Do I take it from that that the Minister is not going to answer my question?

[Lord Callanan]

You can take it from that, yes.

I cannot give any false hope that I will reflect further on this issue between now and Third Reading, so if the noble Lord wishes to test the opinion of the House he should do so now.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Report: 3rd sitting (Hansard): House of Lords
Wednesday 25th April 2018 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I commend the Government for these amendments, which respond to and accept the arguments made in Committee. As I argued then, and there is a reason for me repeating this, the very way that we set up quangos—how they are appointed, funded and run, and particularly their reporting structures and independence from both government and any other organisation they happen to be regulating—is key to how they work, hence the need for primary legislation so that we can interrogate all these things. That is why I very much welcome what has been said.

I am afraid, however, that I am led to make one comment, which is aimed not at the Minister but at friends of his in another place. After the vote last week on the customs union, we read in the Sun that the Government were going to remove those Conservative Peers who had voted for a customs union from their various positions on public bodies. I am absolutely certain that those threats, although mere briefings, did not emanate from anyone in this House. That is simply not the way that I have seen those on the Government Benches here work. They recognise the role of the Lords and that it is our job, on occasion, to ask the Commons to think again, even if sometimes that is a bit inconvenient when it comes from their own side. However, it was rather disturbing to learn that there are certain people around No. 10 who could, even for a moment, think that it would be right to undermine the independence and arm’s-length nature of such bodies, as is often written into their statutes, simply because Members of the House of Lords voted in a certain way. Everything I know about Ministers in this House means I know that not only were they not involved in this but they were probably as shocked as I was. Perhaps the Minister would like to take the opportunity to distance himself from such threats and reaffirm what I know to be government policy: that any appointment to such bodies is done without fear or favour and nobody would be taken off them for a choice that they made in this House.

On the essence of the amendment, and particularly given the role of the Minister and his officials, we are happy to support the government amendments.

[Lord Callanan]

My Lords, I am grateful to all noble Lords who have contributed to this debate. There were relatively few but I thank them and I hope these amendments satisfy the concerns that have been previously raised in the many discussions I have had with noble Lords about this matter. It is proof that, despite the accusations that have been made, we are listening and will respond appropriately if we deem something to be necessary and it improves the legislation, which on this occasion we do.

I am not going to comment on every press article. Precise recruitment criteria are set down for these posts. I am sure that those criteria will be followed and that all appointments will be made on merit.

I hope noble Lords welcome the reassurance that these amendments provide and recognise that this reflects the sincerity of the Government’s commitment to narrowing the scope of the powers wherever practicable without compromising the purpose of the Bill.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Report: 2nd sitting (Hansard): House of Lords
Monday 23rd April 2018 Lords Chamber

[Baroness Hayter of Kentish Town]

My Lords, it is really hard to overstate the importance of the issues raised this evening or, indeed, to understate the lack of government progress on them. It was in February of last year that the Government recognised the importance of the issues. Just so, but what action have they taken and what thought has been given to them since then? There was the welcome commitment to negotiate continued or enhanced co-operation in Munich, but what does that mean? We have heard little or nothing.

This evening we have heard from the noble Lords, Lord Paddick and Lord Wigley, and the noble Baroness, Lady Ludford, about Europol, about Eurojust from the noble Lord, Lord Wigley, about the European arrest warrant from everyone who has spoken, about European criminal records and about the Schengen Information System. These are networks that help to keep our people safe. It clearly cannot undermine any negotiations that the Government are having for us to know what they want to achieve, because we assume that they have already shared this with the EU 27. I wonder whether what they worry will undermine the negotiations is their obsession with the red line around the ECJ or their relationship with their own Back Benches. If not, why are we not hearing more?

I want to concentrate on the issue that is perhaps easiest to understand, which is the European arrest warrant, and not simply from the point of view of where the countries named by the noble Baroness, Lady Ludford, might have a difficulty with it. Are we going to recognise any arrest warrant from the other countries? We do not even know that yet. What access will our law enforcers have to the checks, records and intelligence sharing that they use not simply day by day but hour by hour? As the noble Lord, Lord Wigley, says, time is running out. We need some answers to that.

The amendment would ensure that the Government prioritised these issues over their concern with hard Brexiteers, who seem willing for the country to pay any price, even dropping out of the EAW, simply so that they can say, “Yeah, we’re shot of them”. That is a price that is too high to pay. It would put our security and justice outside an organised, functioning European system—one that has given us great confidence that we are being properly protected. This is an area where the Government need to give some leadership and come up with real proposals that can be implemented to keep all our people safe.

[Lord Callanan]

My Lords, I am grateful to the noble Baroness, Lady Ludford, for raising the important issues dealt with in her new clause proposed in Amendment 30, as it provides me with an opportunity to set out the Government’s position on internal security, law enforcement and criminal justice.

I want to begin by reiterating the Government’s commitment to securing the best possible outcomes for the UK in our negotiations with our European partners. As the Prime Minister made clear in her Munich speech, the UK is unconditionally committed to maintaining Europe’s security, now and after our withdrawal from the EU. The UK has been instrumental in developing many of the tools which the EU has at its disposal, and is a significant contributor. For example, the UK is in the top three of member states that contribute intelligence each day to the different databases within Europol. We want this to continue in a way that works for both the UK and for Europe so that we can respond quickly and effectively to the changing threats that we face, including from terrorism and serious and organised crime. I am grateful to the noble Baroness, Lady Ludford, for raising this important issue in Amendment 30.

The intention of this Bill is to create a snapshot of EU law as it applies in the UK immediately before exit day and then retain it within our domestic law following our departure. The UK has a long-standing tradition of ensuring that our rights and liberties are protected domestically and of fulfilling our international human rights obligations, which will continue irrespective of exit. The decision to leave the European Union does not change this. However, noble Lords will forgive me for repeating it, but the exact nature of our future relationship is a matter for negotiation. I assure noble Lords that the Government are already taking extensive action to prepare the ground for these negotiations.

The noble Baroness, Lady Kennedy of The Shaws, is not in her place, but she has tabled Amendment 66 in this group. I do not think that any noble Lords referred to this amendment, but it covers some areas that have been mentioned and so I will say a few words about that and about our objectives. Our Security, Law Enforcement and Criminal Justice partnership paper published in September last year outlined how we are seeking a relationship that provides for practical operational co-operation, including the European arrest warrant, facilitates data-driven law enforcement and allows for multilateral co-operation through EU agencies, including Europol and Eurojust. We believe that the UK and the EU should work together to design new, dynamic arrangements as part of our future partnership to continue and strengthen our close collaboration.

The Prime Minister has been clear that we are proposing a new treaty to underpin our future internal security relationships. With reference to paragraph (c) in the new clause proposed by the noble Baroness, Lady Kennedy, such a treaty will require an effective and independent means of resolving disputes that is respectful of the sovereignty of both the UK and the EU’s legal orders. The appropriate dispute resolution mechanism and the relationship between our courts will depend on the substance and context of the agreement, and so is a matter for negotiations and not for this Bill.

Let me address briefly some of the questions that the noble Baroness, Lady Ludford, asked me, about extradition from the EU using the European arrest warrant and, in particular, the implementation period. We certainly want to continue to be able to use the EAW to extradite people from the EU during the implementation period. The relevant provisions on this in the withdrawal agreement were not agreed and are hence marked as yellow, and discussions are continuing on this as we speak. However, we believe that it is in the interests of both the UK and EU member states that current capabilities are preserved during the implementation period, and we continue to make that case.

[Baroness Hayter of Kentish Town]

The Minister has answered only one part of the question—whether it would be possible that we would be able to extradite from other countries. I asked whether we were willing also to respect an arrest warrant from another country and to exercise that here.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Report: 1st sitting: House of Lords
Wednesday 18th April 2018 Lords Chamber

[Lord Callanan]

No, I do not think they are mutually exclusive. I think the amendments can both stand.

[Baroness Hayter of Kentish Town]

I thank the Minister for his clear answer today. I wish the amendments he drafted were equally clear—I have had three very good lawyers sit and explain them to me. I have to say that they do not do what he says. There is not a hierarchy in status between EU regulations and EU directives, and the extra protection he has put in will not affect the directives. There are particular directives, such as the ambient air quality directive, the habitats directive and the working time directive, that are not covered by the government amendments. There is enhanced scrutiny for stuff coming over now, but for the future it does not cover those really important directives. I have had three different lawyers look carefully at his wording and, believe me, all three tell me that it does not meet the promise of the Prime Minister.

The Prime Minister said that we will bring over everything, but after that it will be for Parliament—not a statutory instrument but Parliament or the devolved Assemblies—to decide whether there is any change to working time law. The same is true for the environment. It is, I am afraid, not good enough to leave this to secondary legislation. We need to make sure that these really important provisions are safeguarded and that only primary legislation can amend them. I wish to test the opinion of the House.

Brexit: Transition Period

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 16th April 2018 Lords Chamber

[Lord Callanan]

We set out in the agreement that we reached with the EU how we see the implementation period working, which is pretty much to maintain the existing arrangements in place to provide certainty for businesses.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I would like to talk about the transition period. We now understand that we are coming out of all the agencies in March, so we will be out of the European Medicines Agency in March. What is the attitude of the pharmaceutical industry to that decision?

[Lord Callanan]

The noble Baroness makes a good point. We are continuing the discussions with the EU to see what the precise formulation of our involvement in the various agencies will be. We are clear that we want to remain involved and participate in the work of those agencies, which are so essential for many businesses in the UK, but we are currently discussing how precisely that will work during the implementation period.

Brexit: Immigration

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 29th March 2018 Lords Chamber

[Lord Callanan]

We have been very clear that free movement will end at the end of the implementation period. Having said that, in our negotiations with the EU we are committed to seeing how we can smooth the flow of people in the future. However, we are very clear that one message from the referendum was that we need to take back control of immigration and deliver that for the people.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, first, I hope that this is the last time that I will have to be here before the break, and I wish everyone a happy Easter. The Greek Easter will be a week later—pungent bitter herbs for those who are about to commemorate Passover. I understand that there is now to be a further delay to the immigration Bill. Would it not have been a very good idea if, before fixing the exit date, the Government had decided what sort of role there would be for EU citizens after leaving? Will they come into this country in the same way as Commonwealth citizens or American citizens, or in some other way? We are now facing leaving without any idea of what our future Immigration Rules will be. Is it not time that we moved on that?

[Lord Callanan]

I thank the noble Baroness for her Easter good wishes. I think that I will spend my Easter studying amendments to the withdrawal Bill; nevertheless, I hope that we all get some time off. Yesterday the Home Secretary said that we expect to publish a White Paper on a future immigration system before the end of the year in order for consultations to go forward. Legislation will follow that but we have already provided certainty for what will happen during the implementation period up to the end of 2020.

Brexit: British Citizens

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 29th March 2018 Lords Chamber

[Lord Callanan]

I thank my noble friend for his comments, but let us see how Report goes before we get the congratulations in too early. Yes, Emily Thornberry’s comments yesterday were interesting, as were Keir Starmer’s at the weekend when he said:

“I don’t think there is any realistic prospect of”,


Article 50 “being revoked”. On the referendum, he said:

“Having asked the electorate for a view by way of the referendum, we have to respect the result”.


I never thought I would hear myself say it, but on this occasion I agree with the Labour Party.

[Baroness Hayter of Kentish Town (Lab)]

I am glad the Minister agrees with the Labour Party. Will he also agree that the six tests that we have set should be met? This must be a Brexit for jobs, for people, for all regions of the country and for all parts of the country. That is what we want the Government to seek. Will he agree to meet those tests?

[Lord Callanan]

It depends on what the Labour Party’s policy is for this week, but if the six tests are the policy for this week, of course we will try to reach a Brexit deal that works for everyone, is good for jobs, for British industry and for people, and respects the result of the referendum.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Baroness Hayter of Kentish Town]

My Lords, I absolutely recognise that. There are a number of issues which we hope will be part of the agreement. In business, there are what are called goods already on the market, which I believe the transition agreement will cover. There is the arrest warrant. A number of countries forbid any of their nationals being extradited to a non-EU member state, so we could find that if someone who commits murder here hops off to a member state, unless we have this all agreed in the transition deal, they would be free. I understand that the negotiations will say that where a case has started on its track towards the ECJ, let it finish.

There is a raft of things where, if we come out with a bump in the night, and wake up on 30 March with no deal, it will not just be a fall from the bed, it will be a substantial disadvantage. That is why I am confident that we will have a deal, but therefore I am confident that the Minister will accept the amendment.

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

My Lords, I thank the noble Baroness for her contribution.

I have presumed for the purposes of this response that the amendments tabled by the noble Lord, Lord Jay, are intended to ensure that a statute, specifically that provided for in Clause 9(1), is required to approve a situation in which the UK fails to negotiate a deal with the EU.

With the greatest respect, the amendments do not achieve the desired outcome. The statute specified in Clause 9(1) is intrinsically linked to the exercise of the Clause 9 power, which is itself dependent on the existence of a withdrawal agreement. Therefore, in a no-deal scenario, the Clause 9 power and all provisions within it would be unavailable, because there would be no withdrawal agreement.

The amendments would also leave other areas of the Bill inoperable. For example, Clause 7(7)(d) sets out that the power cannot be used to implement the withdrawal agreement. Changing the definition of withdrawal agreement to include the absence of an agreement would therefore leave us unable to use Clause 7 in a no-deal scenario. Vital corrections could not be made in that case and we would be left with many inoperabilities on our statute book.

Of course, I remind the House that, as the noble Baroness, Lady Hayter, and others have said, we are confident that the UK and EU can reach a positive deal on our future partnership—

[Baroness Hayter of Kentish Town]

If the Minister is saying that the amendment does not technically achieve what they want, if we can word it in a way that they want, will the Government then accept it?

[Lord Callanan]

I cannot give the noble Baroness that commitment. I am explaining the amendment and will come to the other implications in a second.

--- Later in debate ---

[Baroness Hayter of Kentish Town]

Article 50 also says that there will be a withdrawal deal which will include the framework for our future arrangements. Article 50, which we triggered, does not say that we are giving notice that we are leaving and that we are leaving without a deal.

[Lord Callanan]

We are giving notice of our withdrawal. The title was in the Bill that we passed to trigger it. Keir Starmer also said:

“Having asked the electorate for a view by way of the referendum, we have to respect the result”.


I agree with him.

I say again only to remind noble Lords so that they can understand my point of view that there has been a legitimate process, marked at intervals by the consent of both Parliament and the electorate. As I said in an earlier debate, amendments that could be perceived as a means to delay or disregard the referendum result carry with them their own risks—people’s faith in their democracy and its institutions. With that in mind, I do not think that it would be right to add an express mechanism within this Bill which might prevent the referendum result being acted upon.

The Prime Minister has been very clear: we are leaving the EU at the end of March 2019. That is not a question of domestic legislation; it is now a question of the EU treaties. While the detail of our future relationship with the EU has yet to be negotiated, I believe that remaining in the EU is the only outcome which cannot be reconciled with the decision taken in the referendum. I do not think that it would be in the interests of either the EU or the UK to open the door to an ever-continuing negotiation process with no certainty that the UK will ever reach a new, settled relationship with the EU. I was going to finish there but I see that the noble Baroness, Lady Ludford, is itching to ask a question.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 19th March 2018 Lords Chamber

[Baroness Hayter of Kentish Town]

My Lords, I think the House wants the Minister to reply, so I was thinking that we are probably ready to end this debate.

I have just heard the first case against referendums, which is that a referendum made my country of Wales dry—and that argument was in support of them. It was certainly dry on a Sunday when I was growing up; and this is the ex-director of Alcohol Concern confessing this.

We have considerable sympathy with one part of these amendments: that the Government cannot be allowed to mark their own homework regarding the outcome of the withdrawal negotiations, be that on Gibraltar, which is mentioned in one of them, our future relations with the EU or the withdrawal deal itself. We discussed last week, as a number of noble Lords have said, the need for a meaningful vote by Parliament on the deal and indeed on what should happen if the deal fails to win approval by the British Parliament. We also considered then the desire of some for a future referendum on the terms of the deal.

As the Committee knows, and as the noble Lords, Lord Wigley and Lord Newby, have said, we see it as essential that there is a proper, meaningful vote on the terms of our withdrawal. We trust that the amendment we will table on Report will find favour in this House and later, we hope, at the other end. As to what should happen if that deal is rejected, surely that must be decided at the time, in the full knowledge of the situation, by the House of Commons. It could be, as in a later amendment in the name of my noble friend Lord Campbell-Savours, by extending the Article 50 period. It might be by revoking the Article 50 notification. It could indeed be by a referendum, though perhaps the wording would be a matter for then, rather than by amendment today. But the first judgment on the terms must surely be for this sovereign Parliament and, if it says no, it must then be Parliament that takes responsibility for what should be the next step. That means nothing is ruled out, which therefore means nothing is set in stone at this moment.

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

My Lords, this has again been an excellent debate and let me say at the outset that I note that support for the amendments comes from noble Lords on all sides of the House. I am not trying to imply that this is a partisan issue, but it is one of principle. I hope that the noble Lord, Lord Butler, the noble Baroness, Lady Wheatcroft, and the noble Lords, Lord Newby, Lord Wigley and Lord Foulkes, who have tabled Amendments 226, 227BH and 357, will believe me when I say that I respect their positions. But this debate has been held many times before, and I therefore hope that noble Lords will forgive me if my argument sounds familiar. The referendum question, agreed by Parliament and presented to the people, was whether we wished to leave or remain in the European Union. Parliament attached no conditions or caveats to that vote.

It was clear in the campaign that a leave vote could lead to a range of outcomes and that not all of us advocating leave agreed about the way to do so. People knew this at the time, it was extensively debated and, in the biggest democratic mandate for a course of action ever directed at any UK Government, voters instructed the Government to leave the European Union.

--- Later in debate ---

[Lord Callanan]

I am not an expert on the proceedings of the other place—I have never been a Member of the House of Commons—but of course the Government will listen to decisions by the House of Commons.

[Baroness Hayter of Kentish Town]

My Lords, this is a crucial moment. The whole issue here is whether it is a mere Motion or whether there is any legislative oomph—sorry, Hansard—behind the vote that Parliament is to have. Am I absolutely correct that the Minister has just said that even if it is a mere Motion, which is what the Government have offered so far, if the deal was rejected they would still take us out of the European Union at the cliff edge, without a deal?

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 14th March 2018 Lords Chamber

[Lord Callanan]

Of course, I would be delighted to do so.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, we have to thank the Minister for his wisdom, his humour, his tolerance—but. One thing with which I agree with the Minister, on which I think I heard him right, is that he appreciates, which I have certainly felt, that there is clear support in Committee for a meaningful vote on the withdrawal deal, or indeed, on no deal. I do not know whether that will be the scorched earth, referred to by the noble Lord, Lord Lisvane, or the absence of a package, suggested by the noble Lord, Lord Wallace, but I think we know what we mean by “no deal”.

The question is: what is meaningful? If it is, as I said earlier, a mere Motion, with no statutory force, that surely is not meaningful. But it is not meaningful if it is not timely; in other words, if we do not have it early enough for it to make a difference. I think the noble Lord, Lord Wigley, asked whether it would be a case of like it or lump it. If so, I do not think that would work in either House. Indeed, I was quite concerned at one point when the Minister seemed to say that, if Parliament voted no to the deal, then we would come out without a deal. That is not what some of the amendments in this group want, and we do not want the outcome that if we vote down what there is, we will get the worst of all worlds. We want to put power back into the Commons, so if the decision is that the withdrawal deal will not do, it would be for the Commons to decide what to do about that. Also, the vote needs to be meaningful in that it should influence the choices that the Government will be making, as my noble and learned friend Lord Falconer said. That is the point. Knowing they have to come here for a deal will affect what happens in the negotiations, so the outcome will be influenced by a vote here.

It is absolutely clear from what everyone has said that it is for Parliament to endorse, or otherwise, the outcome, which is why I am not tempted by my noble friend Lord Adonis’s desire for a referendum. I remind him that it was a referendum that got us into this mess in the first place, but that is not the reason. The reason is that, like other speakers, I want to reassert parliamentary sovereignty. That is why we will try to bring back an amendment on Report that will ensure that, if Parliament gives the thumbs-down to the deal, it would be the Commons and not the Government that decides what happens next.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I have little to add but I have tabled Amendments 350 and 351 in this group. I should like to mention the importance of ensuring parliamentary scrutiny, in particular of tertiary legislation which was mentioned by the noble Lord, Lord Lisvane. We will deal with that issue later in a different group. The issue he raises is covered in paragraph 15 of the report of the Delegated Powers Committee. There is to be no time limit on the ability to pass tertiary legislation.

As has been made clear both last Wednesday and today, in seeking to bring into UK law the provisions that are currently effected in the UK by virtue of the 1972 Act and our EU membership, the Government have simply slipped into a belief that they should take control of all of this and have drafted for themselves powers and possibilities that rightly belong in Parliament, not with the Executive. As has been said, these amendments are to ensure that use of the powers will be properly scrutinised, and that they will be used by Parliament, rather than Ministers. I hope that the Minister has heard this often and strongly enough to be able to indicate, even at this late hour of the night, that it should be the Government who bring forward amendments on this on Report, because the arguments have been so well made. We should expect them to take the next step.

[Lord Callanan]

My Lords, I know that concerns regarding the delegation of legislative power, particularly where that delegation permits sub-delegation or allows for tertiary legislation, are shared by many in the Committee. I know that this debate has been brief because the hour is late, but I am aware of the concerns. I say up front in response to the noble Baroness, Lady Hayter, that the Government understand these concerns. We have listened carefully to this debate and to other representations that we have received, so for Report we will look to see how we can provide additional reassurances and transparency around sub-delegation and additional scrutiny of any fees and charges made under Schedule 4.

I will go into this in a little more detail, if noble Lords will forgive me. I know that it is late, but these are serious amendments on an aspect of the Bill that is of legitimate concern, unlike some of the amendments we discussed earlier. I hope I can do something to put some concerns to rest. I shall first take a moment to clarify that, where a legislative function is being sub-delegated under Clause 7 or any of the other powers in the Bill, that power will also be constrained by the policy restrictions that apply to the delegating power. In the case of Clause 7(1), that includes all the restrictions in Clause 7(7).

Although, beyond Ministers, there are indeed a great number of public authorities in the UK, there are only a very small number to which it would be appropriate for Ministers to sub-delegate legislative functions as an appropriate correction for a deficiency in retained EU law. Again, these will all be subject to the affirmative procedure.

I also restate that any SI providing for legislative sub-delegation will be subject to the affirmative scrutiny procedure and will have to set out what conditions apply to the exercise of that power. Whether scrutinising the sub-delegation of any of the powers in this Bill, the creation of a new, specific and targeted legislative function, or the transfer of any legislative power from the EU, I would expect this House in particular to take a keen interest in these instruments and to have vigorous debates on the appropriateness of the conditions proposed for the exercise of the power before voting on the instrument.

While the Government are listening to the Committee’s concerns about the form that this sub-delegation will take, they believe that conferring powers on public authorities, including Ministers, to allow them to make provisions of a legislative character or other legislation can be an appropriate course of action, either to make corrections to retained EU law or to maintain a regime in the future. This is particularly true where there is a need for specialised, technical rules to be developed, introduced and maintained by a body that has the necessary dedicated resource and expertise.

I will give noble Lords an example. The EU binding technical standards—the detailed technical rules developed by EU regulators for financial services—demonstrate where it might be appropriate to sub-delegate the responsibility for correcting. These standards, which run to almost 10,000 pages, fill out the detail of how firms need to comply with requirements of policy set in higher legislation. The PRA and FCA have already been given the responsibility by Parliament of developing and making the domestic detailed rules needed to ensure that financial services firms are stable, well managed and meet the needs of consumers. These UK public bodies have played a leading role in the EU to develop these standards, so they already have the necessary resources and expertise to review and correct them to operate effectively in the UK from day one of exit.

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[Lord Callanan]

Let me make some further progress and see whether it responds to the noble Baroness’s questions.

Some of the powers to make legislation that will be transferred under the powers in the Bill are integral parts of regimes currently managed at the EU level; for example, where the European Commission currently legislates to add to or remove active compounds from lists of biocidal products. Where sub-delegated or transferred legislative powers are crucial to the functioning of a regime, it would not be appropriate for those powers to be subject to a sunset. That would only postpone rather than remove the requirement in the limited time available before exit for either a regular flow of primary legislation to keep regimes up to date or a suite of primary legislation to design equivalent powers to those which the Government intend to transfer under this Bill.

Perhaps I may address the three elements of Amendments 350 and 351 tabled by the noble Baroness, Lady Hayter. First, I turn to the scrutiny of the exercise of the powers by Ministers of the Crown in Schedule 4. We have laid out in Schedule 7, which I know we will debate at length another day, provisions for the scrutiny of those powers. Our position is that the powers should indeed be subject to the affirmative procedure where Ministers are creating new fees and charges regimes, or where we seek to grant an authority the power to set its own fees and charges. It is the sort of framework being established in which this House rightly takes a great interest. All this is of course possible under Schedule 4 only in relation to new functions that we are transferring from the EU or setting up on exit under the powers in the Bill. We have not provided for the adjustment of these, or for existing fees or charges, to be subject to the affirmative procedure. In years to come, there will be many such adjustments as technology cuts costs and inflation raises them. This ebb and flow can make a real difference to businesses, but does not normally represent a matter requiring debate and division within this House.

Nevertheless, I accept the point made by the Delegated Powers and Regulatory Reform Committee that the raising of a fee not by 1% or 2% but by, let us say, 13,000% would be a substantial matter. I trust, however, in the expertise of the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments to draw this House’s attention to such matters. I remind noble Lords that the negative procedure for statutory instruments does not mean no scrutiny at all, nor does it prevent debate. Nevertheless, if I have not addressed sufficiently the noble Baroness’s concerns on this point, I would be more than happy to discuss further how we might do so. As I said at the start, we are looking closely at this issue and expect to come back to it on Report.

Secondly, these powers are vested also in the devolved Ministers—we do not have the noble Lord, Lord Wigley, with us to make his regular point about devolved matters. While the scrutiny of the powers is important and, as I have just set out, the Government have tried to ensure that the most important of the regulations made under them will be affirmative, it is not for this House to dictate scrutiny to the devolved legislatures. The Bill contains a starting base of procedures for the devolved exercise of powers. While the devolved Administrations are competent to change these following Royal Assent, discussions continue with them about any alterations they may think it appropriate to make in the Bill. It would also not be appropriate for us to require the devolved Ministers to seek our approval for their statutory instruments—I am sure the noble Baroness did not intend this to happen.

My third point regards the sub-delegation of the power to provide for fees and charges. It bears repeating that any instrument providing for this will have to be affirmative, can delegate this power only to a body being given a new function under this Bill, and will have to set out the conditions for the exercise of that power.

[Baroness Hayter of Kentish Town]

It sounds as though what the Minster is reading out dates from before today’s debate on fees and charges. I had hoped that, in light of that, this continued idea of setting these by secondary legislation had gone from his mind.

[Lord Callanan]

We said that we would return to this matter on Report, but we are now talking about the sub-delegation of those fees and charges.

Moving on to Amendment 352 in the name of my noble friend Lord Hailsham, I am in total agreement with the principle that the Government should not raise fees or charges from the public, whether businesses or individuals, without considering the impact on those who will pay or the impact on both the payers and the wider economy. I may be wrong but I doubt that many in this Committee, other than the noble Lord, Lord Macpherson, who is sadly not in his place and is of course intimately familiar with it, will have read Managing Public Money. This weighty tome is easily available online and serves as the sacred text of Her Majesty’s Treasury regarding many things, including the setting of new fees and charges. It sets out that charges on the public must be subject to the general practices on consultation and economic and financial analysis. Without this, the consent of Her Majesty’s Treasury to establishing a new fee or charge, required by paragraph 3 of Schedule 4 for all new fees or charges under the Bill, cannot be obtained.

I hope that this long explanation, for which I apologise at this late hour, and my other points have gone some way to reassuring noble Lords. I am happy to continue discussing these important issues, but in the meantime I hope noble Lords will not press their amendments today.

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[Baroness Hayter of Kentish Town]

My Lords, I do not think that anyone who has read the excellent December 2016 report Brexit: Financial Services from our EU Committee chaired by the noble Baroness, Lady Falkner, will be under any illusion about the challenge that Brexit poses to this economically crucial sector of our economy. This evening we have heard of the needs both of those in the financial sector and of those who depend on it, and we have heard of one possible way forward, but the most important point is that something is needed urgently.

The British Insurance Brokers’ Association, to which we have just heard reference, the Alternative Investment Management Association, the ABI and TheCityUK have all come to me, and I am sure to other Members of this House, to raise their concerns about Brexit and particularly the wider implications for the legal sector and the insolvency sector and what that means for investors as well as for the more traditional City firms. Along the lines outlined by the noble Lord, Lord Carrington, TheCityUK has called for a bespoke market access agreement based on mutual recognition, regulatory supervision and co-operation, with, as we have heard, particular emphasis on mutual recognition and the enforcement of judgments.

In long-term contracts, legal continuity and certainty are vital for business, as we have heard, but also for consumers, as the ABI has stressed. Retired British citizens in nice warm areas such as the south of Spain need to know whether their annuities and pensions from London-based providers will continue after March next year, and indeed after December 2020.

The AIMA wants to see regulatory frameworks that enable managers to deal with any type of fund vehicle or account, as they now do, as they manage the savings and investments of pension funds and insurance companies. The British Insurance Brokers’ Association—100,000 people are employed in that industry, and they arrange 70% of all general insurance—says that it is “critical” to reach a transition agreement quickly and, following that, a mutual free-trade agreement.

The one word that I want to leave the Minister with is “urgency”, because insurance renewals are already being issued for annual policies renewable on 30 March next year, a date that I know is uppermost in his mind. Any policies running after 30 March next year would result in uncertainty over the legitimacy of that part of the policy that is effective after we leave. So we need these brokers to be able to ensure that there are no interruptions in customers’ cover, and that extends to whether we can be insured when we travel and when we drive our cars abroad, and to travel insurance if the EHIC ends—these are real things that people rely on day by day.

As we know, the UK is the world’s largest exporter of financial services to the EU, which is where I have to disagree with the noble Viscount, Lord Trenchard. He thinks that there is great hope somewhere else, but actually, for us to earn money in the EU and maintain all the customers we serve there, we must first prioritise establishing that we can continue with what we do so well there. Shoring up that business certainty through a formal agreement on regulatory equivalence or something similar is becoming ever more urgent.

We first started debating this report in the House in December 2016. We are now in March 2018, and I fear we are no clearer in knowing what the Government are doing. I hope that at this late hour, not just of the clock but of the calendar in moving towards when we leave, the Government will be able to provide a little more assurance than they have done thus far.

[Lord Callanan]

My Lords, I first thank my noble friend Lord Carrington for his amendment, which has enabled us to have this excellent short discussion. I also thank the noble Baroness, Lady Falkner, for her contribution. Of course, I know the report of her committee extremely well, as I was a member of the committee when it was produced and I participated in many of the discussions to which she referred, and which she very ably chaired. I thank my noble friend Lord Trenchard for his comments. He made some excellent points and pointed out the global nature of many of the financial services regulations that we are talking about.

The noble Lord, Lord Hunt, made some good points about the insurance industry. I can assure him that we will continue the work that we are doing in consultation and discussions with the industry as we take the negotiations forward.

However, although I thanked the noble Lord, Lord Carrington, for his amendment, I am afraid that we cannot accept it for reasons that I will explain. It would not be practical given that the negotiations on the UK’s future relationship and the eventual arrangements for market access in financial services post Brexit have yet to begin. It will be important that in entering negotiations the UK retains a degree of flexibility as to what the precise arrangements for market access for financial services firms may be. It is imperative that both sides come to the negotiating table with a constructive mind set. That was the essence of the Chancellor’s contribution last week. Agreeing now to set out a report according to the specific and detailed criteria set out in the proposed new clause would prejudge a great deal of the substance that has yet to be discussed by both ourselves and the EU.

I emphasise that the Government share the aims of the noble Lord’s amendment. We are seeking an ambitious relationship that takes account of the fact that the UK and the EU start from a position of total alignment, with unprecedented experience in working with one another’s regulators and institutions. As the Chancellor outlined last week, the UK is a global financial services hub—an engine that powers the real economy and the UK—and it is a real asset for Europe too.

In his speech—this refers to the point made by the noble Baroness, Lady Kramer—the Chancellor set out three key elements for a possible approach to a future partnership: a binding dialogue for establishing regulatory requirements for cross-border trade; supervisory co-operation arrangements that are reciprocal, reliable and prioritise financial stability; and an independent arbitration mechanism that has the confidence of both parties to provide durable dispute resolution. We hope that we would agree that the UK cannot be a rule taker in financial services but, by working together as the Government have proposed, the UK and the EU can preserve market access and strengthen stability and prosperity in the UK as well as the rest of Europe.

Underpinning this is our commitment to upholding the robust standards which are, as the noble Viscount, Lord Trenchard, pointed out, often based on international standards that we have developed since the financial crisis. These aims have consistently been emphasised in government messaging—more recently by the Secretary of State for Exiting the European Union and by the Chancellor. These align with what we have been hearing from the financial services sector in terms of a desirable end state deal. However, the details have to be worked through via the negotiations and the process will require imagination on both sides. This proposed new clause would set out a prescriptive template for the Government to follow. Negotiations are by their nature fluid and we cannot agree to provide a report based on a set of potential end state arrangements, which are predefined and outlined specifically here, that prejudges the outcome of negotiations before those talks have even started.

These issues are extremely important and I hope that the Government’s conduct in negotiations, as well as the clear public stance of Ministers on the significance of financial services to our future relationship, will help to provide reassurance over our commitment to securing agreement on these issues. Once the negotiations conclude, the Government will need to make clear the substance of what has been agreed. This is particularly so in order to enable the industry to understand the provisions for market access and how they sit within the UK’s agreed relationship with the EU on financial services going forward. We will of course, as always, be happy to update Parliament when the appropriate time comes. However, in light of the need to preserve UK flexibility in the negotiations, I hope that the noble Lord will feel able to withdraw his amendment.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Lord Callanan]

The noble Lord makes a good point. I was speaking to my noble friend Lady Goldie about the matter when he asked her the question earlier. I will have a look at this for him. I think it is fair to say that most of our negotiating positions on the existing directives and regulations are already public. We share our positions, the issues that are being discussed are transparently available on both our website and the EU’s website, and many of the issues that will come to fruition over the next year or two are already in early formative phases. I therefore genuinely do not think that there is much about this process that is secretive, but I will certainly have a look at the issue for the noble Lord.

[Baroness Hayter of Kentish Town]

My Lords, I think it will be obvious why I spoke so briefly at the beginning of this debate, as I have now heard far better speeches on this group than I would ever have made. I am sorry that the noble Lord, Lord O’Donnell, who “salivated”—his word at Second Reading—at the thought of being able to raise money by SIs, was not here. However, he and the other “guilty men”, as they were called, who used these in the past, have made the case well that this would be quite a move from our traditional way of raising money. Whatever the name of the charge—the noble Lord, Lord Deben, said that it was basically “taking money out of your pocket”, and the noble Lord, Lord Cormack, called it an “obligation to pay”—we know what we are looking at.

The noble Lord, Lord Deben, said that this had, “not been entirely well thought through”. I hope that that, rather than anything more untoward, is why this power has crept in there. As everyone has said, it is for Parliament to decide whether to raise funds—whether to pay for some WTO obligation or for anything else. The example of the American situation is very valid: it is how, ultimately, you stop Governments doing what you do not want them to do.

Earlier in this debate the noble Lord, Lord Lisvane, said that we need some hard examples. I do not think that the WTO example is the hard example to justify these powers. I think that his second point was that, if we do not get those hard examples to convince the House, surely it is much better that we leave this to the withdrawal (No. 2) Bill, by which stage we will know exactly what in the withdrawal agreement had led to the need to raise a particular fee, charge, imposition or whatever. That seems more appropriate.

Speaking about the WTO, I think that the Minister said that he thought the Government might be in a difficult position. I have to advise him that I think the Government are in a difficult position now on this power in the Bill. I hope that the Government will bring forward their own amendment on Report. That would be a way of taking matters forward. I am sure that there are far more expert noble Lords in the House than me who might meet the Minister to see whether we can find some such amendment. I hope that we do not have to repeat this debate on Report and that the Minister will bring something back because, if he does not, I can assure him that we will. For the moment, I beg leave to withdraw the amendment.

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[Baroness Hayter of Kentish Town]

My Lords, because the case was made so clearly by the noble and learned Lord, Lord Judge, with the added detail provided by the noble Lord, Lord Marks, I shall not try to add anything to the substance of the argument. I just want to express my regret at the lack of preparation and forethought that went into the drafting of this power. Indeed, I was alarmed by it on the very day I first read the Bill and started blogging about it back in the summer. I then tabled Questions for Written Answer in October asking the Government what other instances there were of new criminal offences being created by secondary legislation. In the replies I received on 2 and 23 October, the noble and learned Lord, Lord Keen of Elie, was unable to list any.

I went on to ask the then Minister, the noble Baroness, Lady Anelay, the same question. The noble Lord, Lord Callanan, had by then taken over and replied in her stead on 14 November—but again gave no examples. The letter merely noted that “existing” criminal offences “in our law”—those are his words—which relate to the EU might need to be transferred to another body: for example, an offence not to notify an EU institution of something important relating to health. The letter ended by saying that the offence might have to be changed to a failure to notify the equivalent UK body. I understand that, but that is an existing offence, not a new one, and alters only to whom the report should be made. No case was made for, and no example given of, where new offences might be needed as we leave the European Union—much less one with the threat of up to two years in prison on first offence.

Noble Lords will not be surprised that I did not let this drop. I raised the issue again with the lucky noble Lord, Lord Callanan, who had another meeting with me in January—he has all the fun. On Wednesday last, when we anticipated dealing with this group, just before we broke for lunch I received an email from his department in response to my request in January. But again the email failed to answer why any new offences might be needed. It commented only that,

“existing criminal offences may require widening or amending, or new offences may need to be created to fix deficiencies in retained EU law”—

but provided absolutely no examples. The only example given in the email was of an existing offence where a business fails,

“to provide an EU authority with certain information”,

and therefore such an offence may,

“need amending to ensure they continue to operate effectively post exit day, for example by changing references from an EU authority to a UK one”,

and to ensure that businesses are complying with the law. Again, that is a change rather than a new offence. It is true that the email goes on to state:

“Previous case law”—


here I shall look to others to look into the detail of this—

“has created some uncertainty as to whether actions such as these would amount to creating a new offence rather than amending an existing one, and there could be differing legal views on this point”.

As I read the email, it seems that on that basis alone—that there is possibly a legal issue as to whether an amendment to an offence is a new offence—the Government have written themselves powers to create brand new offences that are punishable by up to two years in prison. So I think we are agreed that that will not do and that these powers have to go. Moreover, they have to go more completely than the Government allowed for in the sanctions Bill because, as was said in the debate at the time, anything there would follow an international agreement to which we would be a party as a Government—so there would have been that earlier stage. But these powers will not be part of that, and therefore I hope that, when the Minister responds, he will say that these powers are going to be taken out of the Bill.

[Lord Callanan]

First, I thank the noble and learned Lord, Lord Judge, and my noble friend Lord Hailsham for bringing the matter of creating criminal offences under the powers in Clauses 7(1), 8 and 9 to the attention of the Committee through their Amendments 87, 128, 156, 339 and 340, which seek to amend the relevant provisions in the Bill. As I said, I understand that similar concerns were raised during the debates on the Sanctions and Anti-Money Laundering Bill, but that a mutually agreeable outcome has since been reached, with the Government bringing forward a requirement on Ministers to make additional statements alongside their statutory instruments. Of course, the offences envisaged under that Bill were different and carried considerably greater sentences. I hope that I can satisfy the concerns that noble Lords have expressed during this debate. However, the Government are still looking very closely at how the powers in the Bill are drawn and how they will be exercised—and, as I say, we are open to discussion on finding similar solutions in this Bill.

I shall start with the reassurance that the three main powers in the Bill are explicitly restricted from creating a “relevant criminal offence”, which is defined in the Bill as an offence for which an individual who has reached the age of 18, or in relation to Scotland or Northern Ireland the age of 21, is capable of being sentenced to imprisonment for a term of more than two years. A vital part in achieving continuity and consistency for businesses and individuals as we leave the EU is to ensure that criminal offences continue to operate effectively after exit. As such, the Clauses 7(1), 8 and 9 powers can create criminal offences punishable by imprisonment for two years or less. In applying this two-year limit, the Government have sought a balance between appropriately limiting the three main powers and providing a functioning statute book on exit day.

The amendments would see that no criminal offences—or no criminal offences punishable by any term of imprisonment at all—could be created under the three main powers in the Bill. However, it is important that these powers are able to create certain criminal offences, as I shall come on to explain. For example, criminal offences provide an essential function of ensuring compliance with regulatory regimes which provide crucial protections for businesses and individuals. Some of the regimes criminalise particular conduct relating to the EU and some offences may no longer operate as intended after exit day if they are not corrected, particularly where functions transfer to a UK authority. For example, it could be an offence for a business to fail to provide an EU authority with certain information, but after exit day the authority collecting that information might be a UK one instead. Continuity would seem to demand penalties remaining in place—

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[Lord Callanan]

I understand the noble Lord’s concern, which comes on to the same point made by the noble Baroness, Lady Hayter. I will come on to deal with what constitutes a new offence and what does not in a second.

Continuity would seem to demand penalties remaining in place for what would substantively be the same misconduct. Currently, certain types of financial services firms are regulated at an EU level. Depending on negotiation outcomes, we may need to bring such firms into the UK regulatory regime. Under these circumstances, we would want the UK regulators to be able to regulate such firms in a way consistent with their current regulatory framework, in line with their statutory objectives. Where appropriate, this may include bringing firms within the scope of existing criminal offences to which UK financial services firms are already subject.

To give another example, Her Majesty’s Treasury is considering amending the existing offence in Section 398 of the Financial Services and Markets Act 2000 of “knowingly or recklessly” giving a regulator,

“information which is false or misleading”.

This would make it an offence, as a consequence of transferring functions from the European Securities and Markets Authority, for third country central counterparties to mislead the Bank of England in connection with recognition applications. In direct response to the noble Baroness, Lady Hayter, and the noble Lord, Lord Beith, a view could be taken that this creates a new offence as it will be a new function for the Bank of England and extends this offence to central counterparties established in third countries to whom it did not apply before. Her Majesty’s Treasury is also considering making similar provision for the FCA—as a consequence of transferring functions from the European Securities and Markets Authority relating to trade repositories—and similar considerations apply. We therefore need the power in its current shape to provide certainty that we can make such statutory instruments.

As an alternative example, marketing authorisations for medicinal products are currently granted at both EU and UK level. Post exit—again, depending on negotiation outcomes—it is possible that the best way to provide continuity for businesses marketing medicines in the UK will be to convert EU marketing authorisations into UK ones. Under Regulation 95 of the Human Medicines Regulations 2012, it is currently an offence to provide false or misleading information in connection with applications for marketing authorisations as this information is key to assessing the safety, quality and efficacy of medicines. The offence is punishable with a fine or imprisonment for a term not exceeding two years. It is vital that, if we need to, we are able to amend the existing offence or create a comparable one. I think we can all agree that it remains important that false or misleading information is not supplied in connection with the process of converting EU marketing authorisations into new ones, and that the public’s health is protected.

Noble Lords will see from the examples that the intent here is largely to ensure that the same types of conduct carry criminal penalties as before, or that we can create criminal offences to deal with the post-exit world. Previous case law has, though, created some uncertainty as to whether widening an existing offence would amount to creating a new offence, and there could be differing legal views on this point.

[Baroness Hayter of Kentish Town]

The noble Lord just used a different word—“widening”—but I think his earlier example was making a notification to a different organisation. “Widening” suggests that the scope of what might be a crime would be extended. Is that what he meant?

[Lord Callanan]

No, that is not what I meant.

It is therefore vital that the Bill can provide for “creating” criminal offences to ensure that no offences that are needed fall away as we leave the EU, and that businesses and individuals continue to comply with the law.

Any statutory instruments made under Clauses 7(1), 8 and 9 which create or widen the scope of a criminal offence will automatically be subject to the affirmative procedure so that they will be subject to a debate and vote in this House and in the other place. The Government accept that this level of scrutiny is important here and, as I said at the beginning of my remarks, I hope we can consider further safeguards. Therefore, I hope that with those assurances I have demonstrated why we think this element of the power must remain part of the Bill and that noble Lords will feel able not to press their amendments.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Committee: 5th sitting (Hansard - continued): House of Lords
Wednesday 7th March 2018 Lords Chamber

[Baroness Hayter of Kentish Town]

In the absence of my noble friend Lord Bassam, I just want to encourage the Minister—though I am sure it is already in his notes—to comment on Amendment 244, which appears in this group. It requires that:

“The statement under sub-paragraph (2) must include a certification that the regulation does no more than make technical changes to retained EU law in order for it to work following exit, and that no policy decisions are being made”.


I appreciate that the Minister and other Ministers have said all the way along that this is not about making policy, so it should be an easy certification on this occasion for a Minister to sign. I hope that that might be accepted.

[Lord Callanan]

My Lords, Amendment 81 in the name of the noble Baroness, Lady McIntosh of Pickering, concerns the core concept of this Bill, namely that it preserves and makes functional the law at the moment of the UK’s exit from the EU. As the long and learned debates in this House and the other place demonstrate, this is of course something much simpler said than done. We can all agree that the law in the UK should not be considered deficient simply because the EU adopts a new law once the UK has left. The Bill reflects that with the provision in Clause 7(4) and, therefore, this would not constitute a valid trigger for the use of the power in Clause 7(1).

It is also the case that the law is not deficient simply because EU law, as is often the case in some areas, contains provisions that are adopted before our withdrawal but only come into force or apply after exit day. This reflects the approach taken in Clause 3, which provides for the conversion of direct EU legislation that is operative in the UK immediately before exit day. As the Government set out when we debated Clause 3, we believe that it is right that we incorporate only that law which is operative at the time of our exit. It is surely not taking back control to this Parliament and the devolved legislatures if we simultaneously preserve the automaticity of new provisions of what was EU law becoming operative in our law, months or perhaps years later. It would be unacceptable for EU law provisions to flow automatically into the UK many years after we have left and would undermine the clarity and certainty this Bill is designed to provide. That is why Clause 3 preserves only the law as individuals and businesses were bound by it immediately before exit day, and why that decision is reflected in Clause 7(4), which makes it clear that the law is not deficient simply because it does not contain planned future changes to EU law. In preserving EU law, the Government have drawn a line in the legal sand on exit day. Wherever the line was drawn, the outcomes would, of course, please some and not others. I note that the controversial ports regulation, although already in force, will enter into application only days before exit day. Clause 7(4) merely reflects this line in the legal sand.

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[Baroness Hayter of Kentish Town]

Although Amendment 244, in the name of my noble friend Lord Bassam, asks for,

“a certification that the regulation does no more than make technical changes … and that no policy decisions are being made”,

I take the point that policy choices may be being made. Although it is not in this group, Amendment 244A says that there would be a certificate saying that either the change was just technical or a policy choice has been made. That amendment may not be in this group, but I am interested whether the Minister is closing his mind to the idea that there should be a certificate from the relevant Minister. That is what this amendment aims to do.

[Lord Callanan]

No. As I have made clear throughout the Bill, our minds are not closed on many of these matters. I think I gave the noble Baroness an example. It is a difficult distinction to draw about what is making policy or what is a policy choice. As I said, the choice between two regulators can be said to be a policy choice, but it is certainly not our intention to use any of the power in the Bill to massively expand on different levels of policy. It is our intention to impose a snapshot on exit day and ensure that the law is compliant and tidy, as we have said.

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[Baroness Hayter of Kentish Town]

My Lords, I think the good news is that we heard a hint earlier that this might be one of the areas where we are going to hear a bit of movement tonight. If the Chief Whip will allow us to go home after this group, we will be sent home in a very happy mood.

My name is also on these two amendments and I will not make the case again, because the noble Lord, Lord Newby, made the clearest of cases against the use of secondary powers to create new quangos, with others adding similar reasons for why this is not just a power too far but is in breach of government guidelines.

I will add only two points. First—this is a slight gripe, I am afraid—in answer to my Written Question as to whether there were other examples of NGOs established by secondary legislation, the noble Lord, Lord Young of Cookham, said that it was not possible to answer other than “at disproportionate cost”. But the Government must have known why I was asking this Question—they have a brain—and I would have thought that if there were some public bodies set up by secondary legislation they could have found a few examples. This was some time ago. Unfortunately it is an undated letter—like many I get from the Government —but it is HL1651, so I think it was probably last year that I asked it.

My second point—and in a sense it is really the point touched on by the noble Lord, Lord Beith—arises from my experience both as a consumer representative and as a former member of various regulatory bodies set up always by statute. It is simply to say that the very way we establish those bodies—whether it is the Charity Commission, the Competition Commission, the Legal Services Board or the National Consumer Council of which my noble friend Lord Whitty was such an eminent chair until the Public Bodies Act abolished it—affects how they do their job. The founding statute will spell out their task and set out the “have regards to” that influence how they set about their work. It will also define who sits on their boards, how they are appointed, to whom they report and whether, for example, they have a duty to heed consumers in the relevant industry, the regulated industry itself, the employees, the wider social considerations such as the environment or things like that—and indeed their degree of independence from the Government. It is a crucial part of the function of many public bodies.

Such limitations on the powers of those public bodies, and the requirements for how they operate, are written in primary legislation. They can be discussed carefully, they can be amended—as we did before with others, as the noble Lord, Lord Beith, said—they can be debated in this Chamber or in the other place, and they could have pre-legislative scrutiny. For example, setting up a new public ombudsman—as the Member in the other place Mr Jenkins has been recommending—could come by a Bill and could be amended after consultation with the relevant interested parties. That is the way that we should set up public bodies. Instead, this Bill says to a Minister, “Well, you decide. You decide how to set it up; you decide how its board will be established; you decide who to appoint it—probably you could decide to appoint your friends to it”—and Parliament will nod it through. That is not good enough and this power must be dispensed with.

[Lord Callanan]

My Lords, I welcome the opportunity to respond to the debate, if only to confound all the prejudices of the noble Lord, Lord Adonis, that I am some inflexible hardliner who never gives him anything he might want and that only my noble friend Lady Goldie can—I was going to say “satisfy him”, but perhaps I should not use that word. He could not put a cigarette paper between us, by the way. She might do so with more charm than me, but we are saying essentially the same thing.

I understand that a number of noble Lords are concerned about the scope of this power and I reassure your Lordships that the Government are listening to those concerns. When Clause 7 was drafted, we thought it would be only sensible for the sake of contingency to include in its scope the ability to establish new public authorities to ensure, as many amendments in the other place sought to ensure, against losing any important functions as they are transferred over from the EU, as no such public authority may currently exist in the UK. Certainty and continuity are, after all, the watchwords of the Bill.

We have been clear that our preference will always be, where possible, to transfer any functions returning from the EU to existing bodies in the UK, but it has proven necessary to legislate in parallel with negotiations because of the strict Article 50 timeline. Therefore, we do not know at this stage exactly which functions are returning. We must make this legislation without prejudice to those negotiations, where, as the Prime Minister said in her Mansion House speech last week, we are looking to continue a productive relationship with various EU bodies as part of our deep and special partnership.

The noble Lord, Lord Whitty, asked about our strategy towards the agencies. Where there is a demonstrable national interest in pursuing a continued relationship with any EU body or agency, the Government will consider carefully whether we should do so. However, as he knows, it is ultimately a matter for negotiations. We remain committed to keep Parliament as fully informed as possible without prejudice to our negotiating position.

However, we already know of one function that we expect to return to the UK and which it is agreed does not sit happily with any existing public body: our environmental protections. This prompted the Secretary of State for Environment, Food and Rural Affairs to announce our intention to consult on a new, independent and statutory body to advise and challenge the Government and potentially other public bodies on the environment—we discussed this extensively earlier—stepping in when needed to hold these bodies to account and enforce standards. As such, we need to retain the power until we can be confident of delivering all necessary legislative changes without it.

It is for this reason that I am sorry to say that we will not be accepting Amendments 83 and 94 in the name of the noble Lord, Lord Newby, which seek to remove this ability from the scope of the power. The Government have a responsibility to safeguard against the potential disruption and confusion caused to businesses and individuals as we exit the EU, and we believe that the ability to create new public authorities plays a big part in ensuring this. However, the Government also recognise their responsibility to Parliament in listening to Members’ concerns regarding the legislation it seeks to pass. Therefore, I can assure noble Lords that the Government are working hard on finding a resolution to this matter that will satisfy the concerns of noble Lords—maybe even the noble Lord, Lord Adonis—and we will revisit it on Report. In the meantime, with those assurances, I hope the noble Lord will be able to withdraw the amendment.

European Free Trade Association

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 27th February 2018 Lords Chamber

[Lord Callanan]

My noble friend is of course correct. It is a basic factor of all EU negotiations that nothing is agreed until everything is agreed. Having said that, we are a law-abiding country, and when we make agreements, we do not rat on them.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I am sorry I ran into the Chamber, but it was because I had been to inspect the border between Camden and Westminster. When I told my noble friend Lady Blood that this morning, she was delighted—she cannot wait for the Tube to be put there, from northern to southern Ireland. Is this level of understanding in the Minister’s department about how a border between north and south would work actually the level of discussion going on there?

[Lord Callanan]

I am not aware that anybody in my department has said anything of the sort. The point the noble Baroness is referring to is that of course we want no border in Ireland between the north and the south. We are committed to the Good Friday agreement. It has been the basis of lasting peace and prosperity in Ireland, and it is important that we come up with suitable arrangements in future negotiations with the EU to ensure that there is no border.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Baroness Hayter of Kentish Town]

My Lords, as we have heard, these amendments relating to reciprocal issues are key to continuing to protect and assist British citizens after Brexit, including children and protected persons, in ways that hitherto our EU membership and cross-border agreements have provided. In particular these are the European arrest warrant, the mutual recognition of family court judgments, information exchange, Europol and Eurojust.

The Government’s approach to these issues must be agreed in principle with the EU in time to be included in the framework part of the Article 50 requirements and form part of the withdrawal agreement, so a satisfactory approach to these will be key to the future vote on that deal. However, as we have heard from speakers tonight, there seems to be an extraordinary lack of urgency, especially if there is any chance—I am not sure whether this is what the noble Lord, Lord Hannay, hinted at—that a standstill transition agreement could not cover these issues. That would make it even more urgent.

I ask in particular about the Government’s urgency, or lack of it, as I began asking Written Questions on this a year ago. The noble and learned Lord, Lord Keen, will remember it very well: it was on St Valentine’s Day last year—I do not think he chose it to be that day, but never mind—that he answered some of my questions on matrimonial and maintenance proceedings. It was very reassuring: he said that the Government,

“recognises the importance of the issues”.

Wow. There was no more than that then, nor indeed on civil judicial co-operation and cross-border disputes and family law when he replied to a similar Written Question in August. I worry about the lack of progress since then.

As the Prime Minister has remarked and others have repeated, keeping our citizens safe is the first mission of any Government. Therefore, like others, I welcome that she used the Munich speech to reiterate her desire to negotiate continued, and in some cases enhanced, co-operation with EU nations and particularly with these bodies and schemes. As we have heard, the amendments cover the Schengen Information System, the European arrest warrant, the European Criminal Records Information System, Europol and Eurojust. Given what we have heard today and in earlier debates, the Minister will recognise the importance of our continued participation in all of those, but also the challenges that that will bring to them in negotiating.

While we heard from Munich the desire for this comprehensive agreement, it is time for the Minister to offer a bit more detail and clarity sooner rather than later. It is about the direction of travel or the objectives. It does not undermine any negotiations for us, not just our Parliaments, to know what the Government want to do. As the noble Lord, Lord Deben, said, it is time for the Government to move from intention to reality. These issues, as has been touched on just now, are partly held up by an obsession with red lines around the ECJ. They cannot be allowed to stand in the way of some logical and sensible solutions to these problems. These issues are too important to be left to a divided Cabinet. At the moment I see a pantomime horse, or Dr Dolittle’s pushmi-pullyu, being pulled in two different directions, mostly about red lines that are immaterial to the issues we have been discussing. I hope we can hear about some direction and some practical steps from the Minister, particularly on how these negotiations are taking place.

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

I thank all noble Lords and noble Baronesses who have contributed to what has been a fascinating debate. I reiterate the Government’s commitment to ensuring that the outcome of our negotiations with our partners in the EU delivers continued close co-operation on internal security matters.

There are parallels between the effect of Amendment 13 in the name of the noble Baroness, Lady Ludford, and that of Amendment 12 in the name of the noble Lord, Lord Wallace of Saltaire, which was debated previously, in so far as they both seek to discuss the future relationship with the EU, which is, of course, subject to the negotiations. The noble Baroness’s amendment seeks to prevent the Government from bringing regulations into force until agreed procedures for continued participation in EU internal security measures have been approved by both Houses. The Government have already committed to providing Parliament with a meaningful vote on any final deal. This will give Parliament the opportunity to scrutinise the future relationship between the UK and the EU in all these areas. For this reason, it is our view that the amendment is not needed.

I must come back to the points made by my noble friends Lord Hamilton and Lord Lamont. Many noble Lords have pushed me and asked for further detail and clarification on the negotiations. This Bill is negotiation agnostic; it is not concerned with the negotiations. I understand why people want clarification in all those areas, but, of course, when we have reached an agreement, it will be the subject of future legislation that noble Lords will no doubt want to comment on in great detail. However, I will attempt to answer as many questions and go into as much detail as I can. I suspect that the noble Lord, Lord Adonis, may be a little disappointed yet again, but I will do my best.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Baroness Hayter of Kentish Town

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

[Lord Callanan]

I understand that the regulations of the EEA will continue during the implementation period. For the period after the implementation period we will seek to negotiate an ongoing relationship with the other three member states of the EEA. Our aim is to ensure continuity with international partners and the EU during the implementation phase and certainty for businesses and individuals. This approach will mean that we seek the continued application of the EEA agreement for the time-limited implementation period to ensure continuity in crucial elements of our trading and non-trading relationship with those three EEA states. Participation in the EEA agreement beyond the implementation period would not work for the UK. It would not deliver on the British people’s desire to have more direct control over decisions that affect their daily lives and it would mean accepting free movement of people. As I have said to my noble friend, once the implementation period ends we will no longer participate in the EEA agreement. We will instead seek to put in place new arrangements to maintain our relationships with those three countries: Norway, Iceland and Liechtenstein. I hope I have made the Government’s position clear, and I hope as a result the noble Lord, Lord Wigley, will feel able to withdraw the amendment.

[Baroness Hayter of Kentish Town]

There were a number of other questions, such as the one I raised on regulations, that are absolutely pertinent to the Bill. We will come later to how the regulations will be brought over and put into our law, and we will have debates on that on days three, four and five, I think. The question I asked the Minister specifically is: does he know about the work being done by Conservatives, along with Americans, to change regulations to assist a different form of trade? This is relevant to this Bill because we will be coming on to how we secure those regulations and their status in our law. I think the Minister’s understanding of those discussions is relevant today.

[Lord Callanan]

My Lords, there is a huge amount of work being done by various economists, lobby groups, institutions and think tanks on regulation and various agreements. I am not aware of the specific work the noble Baroness talks about. Of course I know some of the individuals she mentioned—they are good friends of mine—but I am not aware of all that work. Now she has mentioned it, I will go away and have a look at it. I am sure it is very good, but I cannot comment until I have seen it.

--- Later in debate ---

[Lord Callanan]

I realise that. I apologise if the noble Lord is disappointed but I was trying to address what is actually in the Bill. As I said, further legislation will follow. We have spent three and a half hours so far debating one grouping of amendments, and we have eight further groupings to get through this evening on the timetable agreed by all the usual sources.

[Baroness Hayter of Kentish Town]

I am sorry to say this, but the amendments were taken by the Public Bill Office as being in scope. They are therefore relevant to the House.

[Lord Adonis]

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

Brexit: EU Customs Union

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 7th February 2018 Lords Chamber

[Lord Callanan]

I thank my noble friend for his question. He is, of course, right. Leaving the EU offers us the opportunity to have our own independent trade policy not contracted out to the European Commission. There are many opportunities that will present themselves, and eliminating some of the extremely high tariffs on agricultural products is one of them.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, in an open letter this morning the British Chamber of Commerce has almost begged the Government to spell out what they actually want from the relationship with the EU. It said quite bluntly that those who are elected to govern now have to make a choice—it is make your mind up time. Will the Minister send a little memo to the Brexit sub-committee which is meeting today to urge it, for the sake of the country’s economy and not just for party unity, to look at jobs first and decide that whatever is best to get jobs and the economy going will be what drives the negotiations?

[Lord Callanan]

I totally agree with the noble Baroness that of course we should have regard to jobs created in the economy. No doubt she will be delighted to know that last week we announced the lowest unemployment totals in the UK for 42 years. I am sure that the Labour Party will want to join us in welcoming that record.

Brexit: Gibraltar

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 29th January 2018 Lords Chamber

[Lord Callanan]

I thank the noble and learned Baroness for her question, but I really do not think that the word “veto” should be used in these circumstances. We have excellent relations with Spain and, as I said, we have been discussing these issues with Spain in a constructive and helpful manner. The discussions are going forward well and we expect a positive result.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, last week I met Sir Joe Bossano, the former Chief Minister, who stressed that not only does Gibraltar have a land border with what will be the EU 27 but that many Gibraltarians consider it to be a border with a potentially hostile state that has designs on their territory—and, of course, the ability to close that very short border. Given that, as we have just heard, paragraph 24 of the EU’s guidelines on the negotiations gives Spain an effective veto, will the Minister give an unequivocal pledge both to guarantee the Rock’s sovereignty and to make its future economic prosperity a priority in the negotiations?

[Lord Callanan]

Of course we can give a pledge to the people of Gibraltar on their sovereignty—we have done that many times—but I do not think that using the words “hostile state” is helpful in the circumstances. The discussions have been positive and cordial. We are engaging with the Government of Spain and trying to resolve the issues. The noble Baroness is right to point to the land border, but it is now a Schengen border. Many residents of Spain—something like 7,000 a day—cross that border to work in Gibraltar, so there is a desire on both sides to make the arrangements work as smoothly as possible.

Brexit: European Travel Information and Authorisation System

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 17th January 2018 Lords Chamber

[Lord Callanan]

No, my Lords, it is not. The noble Baroness is making a whole series of assumptions in her question, none of which may turn out to be true. We are still to have the discussions with the EU on the future relationship in terms of how people will travel backwards and forwards. When we have had those discussions and reached a conclusion, we will be sure to let her know.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, yesterday we had a debate in this House about the question of deal or no deal—indeed, the Minister was here late last night to answer it—and the majority of speakers from the government Benches indicated that they were quite content with the no-deal option, which would mean abruptly crashing out from all EU arrangements and procedures at the end of March next year. Will the Minister confirm that Ministers really would jeopardise British citizens’ rights to travel on holiday visa free, and to work in the EU, as the price of their failure to agree terms with the EU?

[Lord Callanan]

I thank the noble Baroness for her question, but I am slightly surprised that she is coming back to this subject, as we spent about four hours debating it last night. Perhaps it would be helpful to read Hansard. No, we have been very clear that no deal is not an outcome that we want or expect. We are working to get a deal but, as a responsible Government, we have to be prepared for any eventuality. We discussed these issues in great detail last night.

Brexit: Deal or No Deal (European Union Committee Report)

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 16th January 2018 Lords Chamber

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

My Lords, I am grateful, as ever, for the opportunity to respond to the debate on the Select Committee’s report, Brexit: Deal or No Deal. We have heard a series of excellent contributions—some I agreed with and some I did not, but, nevertheless, virtually all of them have shown your Lordships’ House at its best. It has been an extremely good debate, even if all the positions outlined came as no surprise; nobody has changed their views, but it was interesting to hear the different opinions. I will refer to a number of the excellent speeches as I go on.

We have discovered a series of surprising facts, including that the noble Baroness, Lady Falkner, and my noble friend Lord True both enjoy Italian holidays. A vision went through my mind’s eye of the pair of them sitting on a lovely Tuscan terrace sharing a bottle of prosecco and exploring these issues, but I think it would probably take more than one bottle before they agreed with each other.

I thank the European Union Committee, chaired by the noble Lord, Lord Boswell, for producing this thoughtful analysis. I am pleased to hear that the noble Lord has now returned to his duties in the House. I pay tribute to the noble Lord, Lord Whitty, for stepping in for the noble Lord, Lord Jay. Incidentally, it occurs to me that being the chairman of your Lordships’ European Union Committee is a bit of a hazardous occupation: first, the noble Lord, Lord Boswell, is incapacitated, and then the noble Lord, Lord Jay, is incapacitated. I hope that nobody else suffers any unfortunate accidents during their time in this obviously dangerous position. Nevertheless, the noble Lord, Lord Whitty, stepped in very ably to introduce our debate this evening.

I can inform noble Lords that a formal response to the committee’s report is being prepared and is expected to be issued within the usual two-month response time. My department is working with officials from all departments and undertaking a wide range of work to support the negotiations. We recognise the need for businesses to prepare contingency plans, and we continue to engage with companies across sectors and regions to understand the challenges and opportunities that they may face. In November’s Budget, the Chancellor committed to ensure that departments and the devolved Administrations continue to have the resources necessary to prepare effectively for a range of exit scenarios, including that of no deal. Her Majesty’s Treasury has already given departments nearly £700 million to prepare for Brexit, and is making an additional £3 billion of funding available over the next two years.

Many of the points raised by the report relate directly to the second phase of negotiations, and, as such, I hope noble Lords will understand that I will not be able to go into great detail on some of those areas at this stage. However, as more of our contingency planning becomes public, this should not be interpreted as an expectation that talks with the EU will be unsuccessful but recognised instead as the actions of a responsible Government determined to ensure a smooth exit under any eventuality. A deep and special partnership, taking in both economic and security co-operation between the UK and the EU, is of such mutual importance—as my noble friend Lord Hamilton pointed out—that I am confident it can be agreed.

The noble Lord, Lord Whitty, and other noble Lords asked whether agreements to date will stand, what has been agreed in negotiations to date and whether we are still committed to the policy that “Nothing is agreed until everything is agreed”—that famous phrase. Of course both we and—let me emphasise this—the EU have been very clear from the outset that nothing is agreed until everything is agreed. However, we are clear that we want to honour the agreements that have been reached so far in the joint report, and we are proceeding with confidence that we can and will do so.

The noble Lord, Lord Whitty, and other noble Lords asked about the impact of no deal. The committee’s report and our debate this evening have focused predominantly on that scenario. Let me make it absolutely clear, as the Secretary of State did in front of the committee on 31 October, that this Government do not want or expect a no-deal outcome from these negotiations. We continue to seek a deep and special partnership with our European friends and allies as we leave the EU, and we approach the negotiations anticipating success.

In light of our successful phase 1 agreement, I am confident that the prospect of leaving negotiations with no deal has reduced significantly, as a number of noble Lords pointed out. While this progress is encouraging, the Government continue to act responsibly by preparing for a range of outcomes, including the unlikely scenario in which no mutually satisfactory agreement can be reached. Every government department continues to work to ensure a smooth exit from the EU in all eventualities.

Noble Lords have this evening expressed concern that the act of preparing for a no-deal outcome with the EU could act as a self-fulfilling prophecy, increasing the likelihood of this outcome. I do not agree that this is the case. The Government’s contingency planning should not be interpreted as an expectation that talks with the EU will be unsuccessful, but recognised instead, as I said, as the actions of a responsible Government determined to ensure a smooth exit in every eventuality.

Noble Lords have spoken about potential no-deal scenarios. As we enter the next phase of talks, we do so optimistically and fully committed to the Article 50 process. Through the process we have already reached agreement on a number of the critical separation issues, including citizens’ rights, judicial and administrative co-operation and the Ireland-Northern Ireland border. We have consistently called for flexibility, imagination and a willingness to make progress in every stage of the talks.

As I have noted, we are planning for a range of exit outcomes but our focus is concentrated on achieving an ambitious and positive deal. Such a deal is of mutual importance and beneficial to both parties in negotiations. We are therefore confident that such a deal will be agreed.

The noble Lord, Lord Whitty, asked about implementation periods, as did my noble friend Lord True in his excellent contribution—I particularly enjoyed the “fat yellow line” argument. Noble Lords have spoken about the implementation period aspect of the UK’s exit from the EU, which was also considered in the committee’s report. As part of a deal on the UK’s future relationship with the EU, both parties agree that a strictly time-limited period would be mutually beneficial. Such an implementation period has been clearly set out by the Prime Minister in her Lancaster House and Florence speeches. It forms a key part of a smooth and orderly exit from the EU. An implementation period prevents businesses and Governments in the UK and Europe having to make decisions before they know the shape of our future partnership. It also provides individuals and citizens on both sides with time to adapt to the new relationship between the UK and the EU. We have been clear that during the implementation period access to one another’s markets should continue on current terms.

My noble friend Lord True also said that the implementation period must be for implementation. Other noble Lords spoke about the timing and purpose of an implementation period; I agree that it must be time limited and used for implementation.

The Prime Minister has indicated that the duration should be determined by how long it will take to prepare and implement the new processes and systems that will underpin the future partnership. There is broad consensus between us and the EU on the duration of such an implementation period. Our current assessment points to a period of around two years, and the EU has suggested that it could be slightly shorter. Both the guidelines published by the Council and comments made by President Tusk point to the shared desire of the EU and the UK to make rapid progress on an implementation period, with formal talks beginning very soon. I can confirm for the benefit of the noble Baroness, Lady Falkner, that the Prime Minister has said that we want to reach an agreement on the implementation period by March. This will help to give certainty to employers and families as we work to deliver a smooth Brexit.

[Baroness Hayter of Kentish Town]

Could the Minister please clarify one thing? If agreement is to be reached by March, the idea of an implementation period is that you are implementing something. I still have not quite understood—maybe the Minister can help the House—what we could decide by March of this year that could be implemented from March of next year. Is he saying that the whole of our final agreement could be agreed by this March so that we will be implementing that?

[Lord Callanan]

No. As the noble Baroness understands very well, we can agree the principle of the period of implementation by March and we will then go on to the further agreements on the various issues that we have set out.

The noble Lords, Lord Whitty, Lord Butler and Lord Kerr, and the noble Baronesses, Lady Falkner and Lady Ludford, all asked about the legal basis of the implementation period and raised questions over that legal basis. Such an implementation period would be agreed under the Article 50 process, and would be enshrined in the withdrawal agreement, and implemented in this House under the withdrawal agreement and implementation Bill. The EU has been clear on this in its Article 50 guidelines and draft negotiating directive, and the UK Government agree with this approach. The desired implementation period will allow a period of smooth transition to the terms of a new relationship.

The report claims that the implementation period could be used as a mechanism to extend the negotiation period beyond March 2019. The noble Baroness, Lady Falkner, also suggested a method to extend the negotiation period using Article 50. On 29 March 2017, the Prime Minister notified the EU—

Brexit: Reports to Parliament

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 8th January 2018 Lords Chamber

[Lord Callanan]

It is important to bear in mind any possible outcome. We plan for all eventualities, but of course we are planning for a full and special partnership and we hope that will be the outcome.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, discussions are meant to be taking place within the UK as well as with the EU 27. Indeed, the Government promised back in March that there would be “intensive discussions” with the devolved Administrations, but at the moment we know that they are not minded to pass the consent Motions on the withdrawal Bill. Can the Minister undertake to update the House on those discussions before we get to the withdrawal Bill, when, obviously, we will want to know whether consent is likely to be given or withheld?

[Lord Callanan]

As the noble Baroness correctly observed, we have regular discussions with the devolved Administrations; I myself chaired a meeting with the devolved Ministers from Scotland and Wales and officials from the Northern Ireland Office in December, when we discussed ongoing EU business. Separate discussions take place with them on the withdrawal Bill and its implications. Those discussions are detailed, and I am sure that we will want to update the House as soon as we have a conclusion.

Brexit: Equalities Impact Assessment

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 21st December 2017 Lords Chamber

[Lord Callanan]

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 (Lab)]

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]

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.

Brexit: Revocability

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Wednesday 20th December 2017 Lords Chamber

[Lord Callanan]

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 (Lab)]

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]

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: EU Citizenship

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 11th December 2017 Lords Chamber

[Lord Callanan]

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 (Lab)]

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]

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.

Brexit Negotiations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 5th December 2017 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

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]

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.

Brexit: Release of Impact Assessments

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 28th November 2017 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

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]

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.

Brexit: Data Transfer

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 16th November 2017 Lords Chamber

[Lord Callanan]

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 (Lab)]

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]

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—

EU Exit Negotiations

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 13th November 2017 Lords Chamber

[Lord Callanan]

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]

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]

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

Brexit: Sectoral Impact Assessments

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Tuesday 7th November 2017 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

I thank the Minister for repeating the reply, although I regret its content. Not only could we not get the Written Statement except by getting it off Twitter—it does not seem to be on the website—there is also the creation of a new excuse for the non-immediate release, which of course runs counter to the Commons Motion.

I would make one point in answer to aspersions made in the other House, although I do not think the Minister was in any way party to this. The question was asked of my side, “Whose side are you on?”, implying that asking for information was somehow unpatriotic. I say to this House that it is because we are patriots that we need the information, to get as good a deal as possible from Brexit.

Has the Minister yet arranged to meet the noble Lord, Lord Jay, the chair of our EU Committee, as he indicated he would in his Answer to me on 2 November? Given the importance of parity of treatment between the two Houses, which is particularly relevant as we handle this most complicated of legislative, political and diplomatic tasks, can the Minister confirm that our EU Committee will receive the same information, on the same terms and at the same time, as the Commons Brexit Committee?

[Lord Callanan]

My Lords, I thank the noble Baroness for her questions and I can only apologise if the Written Ministerial Statement is not available to her. In response to her two questions, I can confirm that my office is in contact with the noble Lord, Lord Jay, and we are attempting to arrange a meeting as soon as possible in the near future. I also confirm to the House that we anticipate sharing the same information on the same basis with the Lords EU Committee as with the House of Commons Select Committee, subject to our being able to agree the terms of that disclosure.

European Union

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Monday 6th November 2017 Lords Chamber

[Lord Callanan]

The referendum took place. The Government spent, I think, £9 million on sending round pamphlets saying that we would respect the outcome of that vote, and that is what we are doing.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, The Times reported that Mr Gove was joining the Brexit “war cabinet”. I trust that is not the Government’s phrase—we are not at war. Does the Minister agree that we should be talking to our European friends about a close, perhaps a special relationship with the EU after March 2019, and not about being at war with them?

[Lord Callanan]

I agree totally with the noble Baroness. I am sure she is not asking me to comment on everything that the media and the press say—we would be here for a long time if we were to do that. Yes, I agree with the points she has made.

Brexit: Sectoral Impact Assessments

Debate between Lord Callanan and Baroness Hayter of Kentish Town

Thursday 2nd November 2017 Lords Chamber

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

My Lords, the Government have to reflect on the implications of yesterday’s Motion and how best we can meet the requirements set out from the House, bearing in mind that the documents requested do not exist in the form suggested in the Motion.

[Baroness Hayter of Kentish Town]

I welcome the noble Lord the Minister—the third Brexit Minister I have faced—to his first outing in this role. I apologise that I had to bring him to the Dispatch Box early today, but from what I understand he is well up to the challenge of these small inconveniences. However, I am sorry that his Answer does not answer the Question I raised. We know that the Ministers in the other place are already discussing with my right honourable friend the chair of the Commons Brexit committee the handing over of the documents. I ask the Minister to undertake to have similar discussions with the chair of our EU committee about its access to these documents. They are essential for the work it is doing on our behalf.

[Lord Callanan]

I thank the noble Baroness for her welcome. I have watched her as an extremely able and effective performer in this House and look forward to working closely with her, as far as we are able, in the difficult task ahead. The Motion in question was about sharing documentation with the Select Committee on Exiting the EU. As the Secretary of State for Exiting the EU has said in the other place this morning, he has already spoken to the chair of that committee. Further conversations will take place about we how handle the confidentiality of the documents that we hand over. Of course, I will be very happy to have similar discussions with the committees of this House.