Civil Nuclear Road Map

Debate between Lord Callanan and Lord Liddle

Monday 15th January 2024 Lords Chamber

[Lord Callanan (Con)]

My noble friend makes a good point. Separate processes for potential reforms to the planning system are going forward in government across a range of areas. Of course, it is important not just for the nuclear industry but in terms of grid connections, solar farms and all the other technologies coming forward. We need to find ways to do these things more quickly in this country and to make sure that people have appropriate opportunities to feed in their views, their objections, et cetera, but there is no reason why it should take literally decades to do some of these schemes.

[Lord Liddle (Lab)]

My Lords, speaking as a native of Cumberland and a former Cumbria county councillor, does the Minister recognise that the most enthusiastic supporters of new nuclear power are to be found in west Cumberland and among the people who work at Sellafield and in its associated activities? Will he end the record of dither and delay—this is not a party-political point—about what is to happen in the nuclear industry? Does he recognise that at Sellafield and at Moorside there is a potential site for SMRs and the major new gigawatt nuclear power station, which was planned but then scrapped, although it is now apparently back under consideration?

[Lord Callanan (Con)]

I agree with a lot of what the noble Lord said. I absolutely accept the strong support of the communities in west Cumbria. I am not sure I agree that they are the most enthusiastic—I am sure our colleagues from Wales would disagree about that—but we can probably agree that they are as enthusiastic as many other communities. His party-political point about dither and delay was slightly unfair; much of it was started under a Government whom he was close supporter of. But perhaps we should put those matters aside and welcome the fact that both Front Benches now agree that we should take forward the new nuclear renaissance we have announced.

Electric Vehicle Battery Production

Debate between Lord Callanan and Lord Liddle

Monday 23rd January 2023 Lords Chamber

[Lord Callanan (Con)]

We have constant discussions with UK motor manufacturers and of course, we are always available for further discussions with companies that want to bring forward projects. The noble Baroness, as usual, is completely wrong. Already there have been substantial investments in this country. On 1 July 2021, Nissan and Envision announced a £1 billion investment to create a north-east EV hub. The site will produce a projected 100,000 battery-electric cars each year. Ford has committed a total of £380 million to make Halewood its first EV component site in Europe. Pensana received an in-principle offer of government support for its £145 million factory near Hull to make metal for magnets. So, this investment is coming. Of course, it was disappointing that the Britishvolt project was not successful, but the site remains an excellent one for this investment. Subject to discussions with the local authority and the administrators, we hope it can be taken forward.

[Lord Liddle (Lab)]

My Lords, what does the Minister anticipate the future of Jaguar Land Rover to be if there is no battery factory to supply it in the UK?

[Lord Callanan (Con)]

Jaguar Land Rover has an exciting future. It is an excellent company, providing brilliant vehicles that are exported all over the world. I am sure that it wants to make sure that its supply chain is appropriately robust.

Energy Prices Bill

Debate between Lord Callanan and Lord Liddle

2nd reading
Wednesday 19th October 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, Russia’s illegal invasion of Ukraine and its impact on global energy markets have affected families and businesses up and down this country. As we approach winter, this Government have made bold decisions so that homes are kept warm and businesses are kept open. On 8 September, the Prime Minister set out a comprehensive package to tackle rising energy prices. As part of this, she announced that we would bring forward emergency legislation, which is before noble Lords today.

I thank the Opposition and the whole House for their constructive engagement to expedite the Bill. Providing support to those who need it is a shared value across all parties, as seen in Monday’s proceedings in the other place. I also thank the DPRRC for its report on the Bill, published this morning. I welcome its constructive comments on ensuring that the powers in the Bill are appropriately drafted and justified. We will of course be responding to the committee shortly; however, it is important that we remember the context of the Bill and ensure that consumers are able to benefit from the Bill as intended and as I will set out.

The Energy Prices Bill means that consumers will pay a fairer price for their electricity and that no one is left behind. First, the Bill provides the legislative footing for the energy price guarantee, which will protect UK households from soaring energy prices. By reducing the unit cost of electricity and gas, the typical household will have the equivalent of an annual bill of £2,500. Effective from 1 October this year to the end of March next year, the energy price guarantee will provide domestic consumers in Great Britain and Northern Ireland with crucial support in the winter months.

To ensure that support is available up and down the country, an alternative fuel payment will provide a one-off £100 payment to UK households that use alternative fuels for heating. Heat network consumers will also receive a one-off £100 payment. We are exploring delivery routes for the alternative fuel payments in Northern Ireland as well.

The energy bills support scheme was announced earlier this year to provide £400 to support households. I confirm that, through this Bill, households in Northern Ireland will be able to receive equivalent support to those in Great Britain.

The Bill also provides support for non-domestic consumers, such as businesses, charities, schools and hospitals. The energy bill relief scheme will enable the Government to provide financial assistance to all eligible non-domestic organisations in Great Britain and Northern Ireland over the coming winter period. Bills will be reduced by a new government-supported price, which is less than half the wholesale prices anticipated this winter. Discounts apply from 1 October 2022, with an initial period of six months.

In three months, the Government will publish a review to consider how to continue support for non-domestic users, particularly those most vulnerable to energy price rises. The Bill provides that the scheme may be extended to those deemed eligible for up to four consecutive six-month periods. For non-domestic consumers who use heating oil or alternative fuels instead of gas, the Bill will also introduce a non-domestic alternative fuels payment. This support will likely take the form of a flat-rate payment delivered via electricity bills.

This legislation strengthens previous action by requiring, rather than expecting, landlords and other intermediaries to pass on the energy price support they receive to end-users, such as tenants, as appropriate. This applies to the energy price guarantee, to the energy bills support scheme and to the energy bill relief scheme. The Bill will also ensure that heat networks benefiting from the energy bill relief scheme pass through cost savings to their consumers. The Bill will provide for the appointment of an alternative dispute resolution body to handle complaints raised by consumers against their heat network if it has not complied with those pass-through requirements.

Finally, we must protect consumers from paying excessive amounts for this low-cost electricity, while ensuring that no firms are unduly profiting from Russia’s illegal invasion of Ukraine. Wholesale electricity prices are currently set by gas-fired generation, which is the most expensive form of generation. This means that consumers are having to pay over the odds for cheap low-carbon generation. The powers in the Bill will allow us to introduce a temporary cost-plus revenue limit for low-carbon generators that are not currently covered by a contract for difference. This will allow generators to cover their costs and receive an appropriate revenue that reflects their investment commitment and risk profile. The precise mechanisms will be subject to a consultation to be launched shortly, ahead of it coming into force from the start of 2023.

I stress that this is not a windfall tax; this is a targeted intervention to deal with a specific problem that has occurred in the wholesale electricity market. It will help to break the link between abnormally high gas prices and the cost to consumers of low-carbon electricity. We are also legislating for powers that will allow us to offer a contract for difference to existing generators not currently covered by the Government’s existing contracts for difference scheme.

[Lord Liddle (Lab)]

I raised this point about a windfall tax last week, so I thought I would be justified in intervening today. There is an argument that a windfall tax, which is predictable because the suppliers of electricity know what bills they are going to have to pay, is better in terms of promoting long-term investment in renewables, which we desperately need, than this cost-plus arrangement, which is also variable, as I understand it, by ministerial order. That provides no certainty for potential investment.

[Lord Callanan (Con)]

I am not sure the noble Lord is correct. The reason we have selected this mechanism is that it is a complicated picture; of course, many suppliers would no doubt argue that they have sold ahead their production to energy retailers, et cetera, and therefore the precise circumstances of every individual supplier will determine the arrangements that will be appropriate for them. It is not a windfall tax because a windfall tax would be levied on profits and would go to the Exchequer. This money clearly does not go near the Exchequer; it will go directly to consumers in the form of lower bills.

I mentioned that we will also introduce a contract for difference to existing generators that are not currently covered by the Government’s existing contracts for difference scheme. We hope that many of these suppliers will move voluntarily to contracts for difference payments, which will provide them with secure long-term revenue, and therefore there will be no need to impose this cost-plus mechanism.

The voluntary contract would grant existing generators longer-term revenue certainty and safeguard consumers from future price rises. This Bill is part of the swift, decisive action we are taking to deliver affordable and secure energy in the UK. There are no cost-free actions, but I think the whole House agrees that it would be wrong to do nothing. This Government will always act decisively to support households and help businesses grow. The consequences of not acting now would mean worse economic outcomes going forward; this Bill will provide certainty, reduce inflation and support economic growth. I would welcome the support of noble Lords in ensuring the Bill becomes law and therefore commend it to the House.

Economy: The Growth Plan 2022

Debate between Lord Callanan and Lord Liddle

Monday 10th October 2022 Lords Chamber

[Lord Callanan (Con)]

I know that there has never been a tax that the noble Lord does not want to increase even further, but it is already a very high level of tax. I think I saw a figure of £170 billion mentioned by the Opposition. That is worldwide profits. The UK cannot tax profits made in other jurisdictions; we can tax those that are made in our country, that we have control of. I remind the noble Lord that we also want those companies to invest in renewables, as they are doing. There are many renewable projects—offshore wind projects, hydroelectric projects, et cetera—in which we need additional investment. So the calculation made by the Treasury, which I have never seen to be shy of raising taxes in the past when it could, is that, on the one hand, of course we want to secure a fair return for taxpayers, but we also want to make sure that the profits are there to enable the massive sums that we need to invest if we want to move to a green transition in future.

On the suggestion of the noble Lord, Lord Vaux of Harrowden, of a briefing on energy markets for interested Peers, I say to the noble Lord that, as he knows, this is a complicated subject. Exactly who is making the excess profits under which particular regime is a complicated issue. He will be pleased to hear that we will shortly be debating the legislation to implement the support policies I have mentioned, and I am sure that these matters will be raised further in the debate during the passage of that legislation. I look forward to discussing it further with him then.

The noble Lord, Lord Liddle, made the point that we need to get onshore wind moving—a matter I know is dear to the heart of the noble Baroness, Lady Hayman, and she will no doubt agree. The British Energy Security Strategy recognises the range of views on onshore wind across the country and, as I said before, we will be consulting on developing partnerships with a number of supportive communities that wish to host new onshore wind infrastructure, perhaps in return for guaranteed lower energy bills. The growth plan went further, with specific changes to accelerate delivery of infrastructure, including bringing onshore wind planning policy in line with other infrastructure policies to allow it to be deployed more easily in England. The noble Baroness, Lady Walmsley, has asked many times about that; I am sure she will be pleased to hear that.

The noble Baroness, Lady Fox of Buckley, meanwhile noted the need for green innovative growth. We have indeed established a Green Jobs Delivery Group, headed by Ministers and business leaders, to act as a central forum for driving forward action on green jobs and skills. Our plans for net zero and energy security are driving an unprecedented £100 billion-worth of private sector investment by 2030 into new British industries, supporting about 480,000 green jobs by the end of the decade. To return to my earlier point, many of the companies investing in the UK are those that the Opposition wish to tax to death.

The noble Lords, Lord Bilimoria, Lord Eatwell and Lord Fox, alongside my noble friends Lord Lamont, Lord Lilley and Lord Bridges of Headley, all commented on the Government’s plans regarding taxes. The plain truth is that the Prime Minister promised that this would be a tax-cutting Government and we are keeping that promise.

A number of noble Lords also raised the overall approach of the growth plan.

[Lord Liddle (Lab)]

As I understand it, the Government are at present in negotiation with renewable energy suppliers, including companies running onshore and offshore wind farms, to persuade them voluntarily to accept a lower price than they are presently getting. This is effectively restricting their profits without any benefit to the Government in terms of tax.

[Lord Callanan (Con)]

This goes back to the point I made to the noble Lord, Lord Vaux, earlier: we will indeed be debating these matters further when the legislation arrives. It is a complicated subject. There are two types of renewables certificate. The earlier renewables obligations were given before 2015, and it can be said that some of those operators are indeed making considerable profits. They are perhaps the ones that the noble Lord is talking about. Then there are those that have been on the contracts for difference scheme since 2015, which are now, I am pleased to say, paying back into the system, such is the success of the CfD regime. But, as I said, we will be debating that when the legislation comes to this House.

Net Zero Strategy and Heat and Buildings Strategy

Debate between Lord Callanan and Lord Liddle

Wednesday 20th October 2021 Lords Chamber

[Lord Callanan (Con)]

I believe there were some documents that were published in error, but they have been withdrawn. Fundamentally, we do not believe in telling people what to eat or how to live their lives. Our focus is on helping people, incentivising them to make green choices, and to make those choices easier and cheaper. As we transition to net zero, we will be tech- led using British technology and innovation, just as we did in the last innovation revolution. I appreciate that the Greens want to lecture people and instruct them; I believe that carrots are much better than sticks.

[Lord Liddle (Lab)]

My Lords, I welcome this Statement. I have not had the opportunity, as yet, to read all the documents. I fear the criticism that I made in the debate on levelling up on Thursday is relevant. There is a clarity of destination about the Government’s policies, but no viable plan to get there. The thing that stuck in my mind is that when we are looking at the necessary move away from gas central heating, the incentives being offered for heat pumps—the £450 million over three years—is clearly inadequate, in comparison with the huge scale of the challenge.

I have always understood the noble Lord, Lord Callanan, to be a Conservative who believes in the use of market mechanisms—they are what Conservatives normally support. Can he tell me the Government’s estimate of the rise in gas prices that would be necessary to persuade the public, under market mechanisms, to install heat pumps?

[Lord Callanan (Con)]

The noble Lord will be pleased to know that I do believe in market mechanisms. His question is impossible to answer, and let me explain why. Heat pumps are three to four times more thermodynamically efficient than existing gas boilers. At the moment, because of the costs of various policies on the production of electricity to successfully decarbonised the electricity sector, there is an imbalance in pricing. The Treasury and the Government have accepted that we need to do something about rebalancing gas and electricity prices. Now is clearly not the time to do this, when we are experiencing record gas prices. In the longer term, and bearing in mind that this is a 15-year strategy, we need to change the balance of these costs. We are committed to do so. There are other market mechanisms of which I could speak in favour. We will consult on a market mechanism for gas boiler manufacturers to have a certain proportion of their sales be in heat pumps. I repeat what I have said before: the boiler upgrade scheme is not the only support mechanism we offer for installing heat pumps.

United Kingdom Internal Market Bill

Debate between Lord Callanan and Lord Liddle

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Wednesday 25th November 2020 Lords Chamber

[Lord Liddle (Lab)]

Can the Minister reflect a bit more on what he has just said about treating this issue as a matter for common frameworks? It sounded as though he wanted a co-operative solution to this problem, one that would bring all the devolved Administrations into a common framework. However, at the end, he said that it is not appropriate—but why not? He has not given a satisfactory answer to that question. I remember challenging the noble Lord, Lord True, in an earlier debate at Report, on whether the Government had changed their policy on common frameworks and were no longer taking them seriously. I got a very vigorous shaking of the head from the noble Lord, Lord True. Would this not be a perfect example of how common frameworks were still being taken seriously by the Government, and would it not resolve a real problem that the Government have had?

The Minister talked about unacceptable uncertainty, but frankly, the unacceptable uncertainty about state aid has come from this Government. Mr Dominic Cummings had one view of state aid, as against the traditional Conservative view. That is where the uncertainty came from. Now that he has gone and now that he is out, thank goodness, we have an opportunity to create a sensible common policy. There is a need for balance, and it must be sensible. The best way is through a common framework in co-operation with the devolved Administrations.

[Lord Callanan (Con)]

I am not sure whether that was a question or a speech in the wrong place—but I take the noble Lord’s point. I think he is getting issues conflated. The common frameworks programme of course is a programme of work with diffuse levels of power and ultimately it is not clear where regulation lies. To resolve those matters on a cross-UK basis, there is no doubt in our mind where the proper operation of these powers is—state aid, or rather subsidy control, is a reserved matter for the UK Government. However, we have said that we want to work collaboratively. We want to work with the devolved Administrations and of course, as we have said, we will consult closely with them on any new policy that we develop and indeed on whether legislation is necessary. But, given my general support for the framework and the Government’s support for the framework programme, I do not believe that it is appropriate for this matter to be included in the framework programme.

Rolls-Royce

Debate between Lord Callanan and Lord Liddle

Wednesday 14th October 2020 Lords Chamber

[Lord Callanan (Con)]

We are happy to support good R&D projects. Rolls-Royce is a major beneficiary of our R&D support operations through the £1.95 billion Aerospace Technology Institute programme. It is also one of our largest UK investors in R&D.

[Lord Liddle (Lab) [V]]

My Lords, I was working for my noble friend Lord Mandelson in 2009 during a similar economic crisis when, as Secretary of State for Business, he secured assurances from Rolls-Royce that the establishment of the plant in Singapore would not lead to closure of the UK plant at Barlick or severe job losses. Given the crucial importance of Rolls-Royce to the British economy and the financial links between the Government and the company, why has the Secretary of State not made a personal intervention to save the Barlick plant?

[Lord Callanan (Con)]

The plant is not closing. Rolls-Royce has made it clear that it sees it having a long-term future and will continue to invest in it. However, we have to understand the context: the Covid-19 pandemic has dealt it a devastating blow. In its first half-yearly results, Rolls-Royce announced that the company’s revenue fell by 24% to £5.6 billion, while for civil aerospace, the area in which it operates, revenue fell by 37%. This is a devastating time for many companies, including Rolls-Royce. We are doing all that we can to ensure that it survives the pandemic and can go on to generate secure, well-paid jobs in the future.

European Union (Withdrawal Agreement) Bill

Debate between Lord Callanan and Lord Liddle

Committee: 2nd sitting (Hansard continued) & Committee stage & Committee: 2nd sitting (Hansard continued): House of Lords
Wednesday 15th January 2020 Lords Chamber

[Lord Callanan]

As the noble Lord is well aware, it is the role of the Commission to do the negotiating. It will report back to the Council and the Council will provide steers on how it will do that, but the detailed negotiation is a matter for the European Commission.

[Lord Liddle]

There is a meeting every fortnight of officials from member states that monitors what the European Commission is doing.

[Lord Callanan]

There is not a direct analogy between the position of the UK and that of the EU. The UK is one member state and the EU is 28—shortly to become 27—member states. My point is that this enables the UK to speak with a single voice in negotiations and ensures that partners can have faith that the Government’s position is the position of the United Kingdom.

It goes without saying that the Government will of course support Parliament in fulfilling its important role in scrutinising the actions of the UK Government in the negotiations. Both Houses will have all the usual arrangements for scrutinising the actions of the Government. I find incredible the statements that have been made about how little a role Parliament will have to play in these negotiations. This House alone has spent over 650 hours on debates on EU-exit-related themes since the 2016 referendum—believe me, from my point of view sitting on the Front Benches, it has sometimes seemed even longer. I find it difficult to believe that noble Lords will not want to question and interrogate me or whichever other Minister is in my place at the time on these negotiations. Indeed, committees of this House have already published three reports on this Bill after fewer than 10 sitting days of this Session.

Let me address the points made by the noble Earl, Lord Kinnoull, and the noble Lord, Lord Liddle, on the role of the European Parliament and the famous Article 218. The noble Baroness, Lady Ludford, is sadly not in her place but we have served in the European Parliament and know the reality of these matters. It is important not to draw unhelpful comparisons between the Commission which, as I said, negotiates on behalf of the 27 member states, and the UK Government on how negotiations are conducted. The information provided by the Commission to the European Parliament is carefully calibrated to not put the EU at a disadvantage in the negotiations. The detail of what information shall be provided to the Parliament is left entirely to the discretion of the European Commission.

The European Parliament will, as this Parliament often does, try to insert itself into the negotiations and want to influence their conduct through its various committees and organs. That is entirely right. It happens in the European Union and I suspect it will happen in this country as well. However, we need to be careful not to overstate what Article 218 does. It is not specific on reporting requirements and that compares very well with the Prime Minister’s commitment to keep Parliament fully informed about the progress of these negotiations. Article 218 does not specify what documents will be available or when.

Of course, it also bears saying that this Bill is not the final word on engagement between Parliament and the Government. As I indicated to the noble Earl, Lord Kinnoull, when we met and as I have said a number of times, the Government will want to start a process of discussions with Parliament into exactly how the various committees and organs in both Houses will scrutinise the work of the Government in this area. In our view, there is no need to set out bespoke statutory reporting requirements in the Bill or impose a statutory duty on a Minister to provide public commentary on the likely outcome of confidential negotiations at a fixed point, as was proposed in Amendment 28. In our view, this risks seriously disadvantaging negotiators acting for the United Kingdom.

I also note that setting out requirements of this type in legislation might well not have the desired effect, as an attempt to pre-empt outcomes and timings can be easily overtaken by events. Let me give the House an example. Last week, I delivered an update in this House on the Government’s negotiations and on Article 50, as required by Section 13 of the European Union (Withdrawal) Act 2018 and the Benn Act which many Members in this House spent many hours telling us was essential. For that debate, which took place at 10.30 in the evening, virtually the only people in the House to debate these matters were myself and the noble Baronesses, Lady Ludford and Lady Hayter. Many of the Members who insisted on passing the Benn Act and introducing these statutory reporting requirements did not trouble themselves to come along and take advantage of the legislation they had passed. There were only three speakers in that debate, myself and the two noble Baronesses.

Brexit

Debate between Lord Callanan and Lord Liddle

Monday 21st October 2019 Lords Chamber

[Lord Callanan]

I think my noble friend is getting somewhat ahead of himself. We will wait to see what happens in the other place, but until those provisions are changed or altered by statute, the provisions for the meaningful vote under both Section 13 of the EU withdrawal Act and the Benn Act remain in place.

[Lord Liddle (Lab)]

My Lords, does the noble Lord agree that while we have debated Brexit for many hours in this House, what was agreed at the European Council last week is a fundamental change from anything we have considered up to now in two crucial respects? The first is the constitutional implications for Northern Ireland. No one ever contemplated that we would go for some version of the Northern Ireland backstop that would be permanent and have serious constitutional implications for the whole of the country. Secondly, I believe that in the political declaration, the economic policy and the ambition for the trading relationship are fundamentally different from what Mrs May suggested and would be terribly damaging, particularly to workers and companies in the manufacturing sector, as virtually all the trade associations in the sector have said. Is it not time that we made sure that these proposals, which could have profound impacts for decades to come, are properly considered, rather than the Government attempting to rush them through before we know what they actually mean?

[Lord Callanan]

It is always important that we in this House scrutinise these matters carefully, and that the House of Commons does so as well. However, I have to say to the noble Lord that I remember sitting here when Members were solemnly telling us how vital it was to rush through all the various stages of the Benn Bill. I recall thinking, “I’ll remind them of this when it comes to future legislation”.

Brexit

Debate between Lord Callanan and Lord Liddle

Saturday 19th October 2019 Lords Chamber

[Lord Callanan]

Of course they will not have direct representation, which is why we want to see that there is ongoing democratic consent to these arrangements from representatives of the people of Northern Ireland.

The noble Baroness, Lady Ludford, raised the issue of customs. Before I address her point, I am sure that noble Lords will want to join me in saying how good it is to see her back in her place. We will leave the EU customs union as one United Kingdom. The UK will be a single customs territory, with control over our independent trade policy. The new protocol also explicitly sets out that Northern Ireland is in the United Kingdom’s customs territory. The EU’s administrative customs procedures will apply in Northern Ireland, in order to make sure that goods destined for the EU comply with the correct process. No tariffs will be payable on goods moving from Great Britain to Northern Ireland unless those goods are at risk of moving on to the EU. The noble Baroness, Lady Ludford, asked me about compatibility under Section 55 of the Taxation (Cross-border Trade) Act 2018. Section 55 is not a barrier to the withdrawal agreement. The agreement is clear that Northern Ireland is, and will remain, part of the UK’s customs territory.

The noble Lord, Lord Liddle, raised the issue of regulatory alignment. The new protocol establishes a single regulatory zone on the island of Ireland. This involves Northern Ireland aligning with a limited number of specific EU regulations. The UK Government will always be committed to protecting Northern Ireland’s position in the UK’s internal market. The new protocol explicitly enables the United Kingdom to maintain the guarantee that businesses and farmers in Northern Ireland will continue to have unfettered access to the rest of the UK market—which is something I am sure noble Lords will welcome.

Looking ahead, we have also negotiated and agreed changes to the political declaration, as noted by many noble Lords, including the noble Lord, Lord Birt. This will provide a framework for an ambitious future relationship with the European Union. We have removed all references to the backstop from this political declaration while setting out our clear intention to pursue a future relationship with a comprehensive and balanced free trade agreement at its core, alongside agreements on security and wider areas of co-operation. It ensures that the United Kingdom will take control of its own regulatory affairs. Our commitments to the level playing field will be commensurate with the scope and depth of the future relationship. This will prevent unfair competitive advantages and uphold the current high standards in areas such as employment and environmental standards.

[Lord Liddle]

My Lords—

[Lord Callanan]

I think I am about to predict what the noble Lord is going to ask me, if he will just be patient.

A number of noble Lords, including the noble Lords, Lord Kerslake and Lord Foulkes, the noble Viscount, Lord Chandos, and the noble Baroness, Lady Smith, raised the issue of workers’ rights. The UK has a long and proud tradition of leading the way in workers’ rights, where we have always set a high standard. We recognise that Parliament wants to see these hard-won rights protected and not weakened by our departure from the EU, and we are happy to ensure that this is the case. Both the public and parliamentarians should be in no doubt that, as we leave the EU, we will maintain and increase these protections via both the withdrawal agreement and future legislation. As the Prime Minister set out in the other place earlier, we will bring forward measures to protect workers’ rights in the withdrawal agreement Bill. If I have not addressed the noble Lord’s point, I will take his intervention.

[Lord Liddle]

I am very grateful to the Minister for giving way. In addition to the point about workers’ rights, my intervention was to ask the Minister whether he will put in the Library a letter that explains to Members of this House, in very clear terms, the difference, in terms of the economy and free trade objectives, between Mrs May’s political declaration and the current one. As I pointed out, I think some of them will have a significant economic impact, and it is the duty of the Government to explain to Members of this House what those differences are.

[Lord Callanan]

I will certainly write to the noble Lord outlining the changes to the political declaration and place a copy in the Library for other Members.

We will also be working hard to secure trade deals with other international partners. Let me reassure the noble Lord, Lord Rooker, that while we explore these new trading opportunities, we will not dilute the standards for which British products are world renowned—and, as the Prime Minister has made clear on many occasions, nor will our NHS be on the table in those negotiations.

The political declaration also provides for a security relationship that will enable the UK and the EU jointly to combat the shared threats faced by our citizens, domestically and abroad. This revised deal further makes it clear that participation in defence co-operation will always be the sovereign choice of the United Kingdom.

Of course, this deal does not consist just of these changes. We are offering a deal that not only removes the anti-democratic backstop but, more broadly, maintains our strong commitment to citizens’ rights and to a transition period, which gives welcome stability to businesses both in the UK and the EU, and also lays the foundations for us to commence negotiations for an ambitious future relationship. Noble Lords will have noticed, I am sure, that Article 184 of the withdrawal agreement requires both sides to use best endeavours to get this legal text agreed and implemented by the end of 2020. Both sides are committed to making preparations for an immediate start to the formal negotiations and to approach these in good faith. Noble Lords should know—I think I outlined it last week—that we are preparing for these negotiations and we will work with Parliament as well as a wide range of partners, including, of course, in the devolved Administrations, to ensure a successful outcome that delivers in the interests of all parts of our United Kingdom.

The noble Earl, Lord Kinnoull, asked about the Government’s approach to the Joint Committee. I can confirm that it will be underpinned by full ministerial accountability to Parliament, and that the Government will continue to discuss with Parliament and its committees the appropriate ways to achieve this.

It is late on a Saturday afternoon and I will not seek to detain the House any further. We have heard many diverse views on the deal. I thank all noble Lords for their contributions. I also pay tribute to the House authorities, officials and my private office for making preparations so that we were all able to sit today. The deal that we have debated is one that will deliver the result of the 2016 referendum and ensure that we can leave the European Union on 31 October in an orderly and friendly way. The deal honours the territorial sovereignty of the United Kingdom; it ensures that the future of Northern Ireland will be decided by the people of Northern Ireland; it provides the foundations for an ambitious relationship with the EU founded on a comprehensive and balanced free trade arrangement; and it allows us to get Brexit done and leave the EU in two weeks’ time. In doing so, we can focus on the people’s priorities, so that the country can come together. I commend this deal to the House.

Brexit: Preparations

Debate between Lord Callanan and Lord Liddle

Tuesday 8th October 2019 Lords Chamber

[Lord Callanan]

My noble friend speaks on this subject with great authority. I entirely understand his point, but from his knowledge he will also understand why I cannot go any further than the answer I gave earlier.

[Lord Liddle (Lab)]

My Lords, this is a factual question, not a pejorative one. What is the Government’s central estimate of the additional average time that it will take a lorry to pass through the channel ports from Dover to Calais, and what is their estimate of the economic cost of the delays that will result?

[Lord Callanan]

I am always suspicious when anyone gets up and says, “This is a factual question”. The noble Lord knows very well that it is impossible to put numbers on these issues—it depends on a huge range of factors. If he tells me what the exact interpretation and application of the regulations will be by the French authorities, I may be able to get closer to an answer that he wants. Our job is to ensure that businesses and hauliers are well prepared. That is why we are investing so much in a huge public information campaign. One of the interesting statistics is that more than 80% of hauliers crossing the short straits are not British operators; they are mainly from other European countries. This is one of the reasons why we need to reach out to those countries, to haulage associations, drivers, organisations et cetera, to ensure that those organisations know the requirements and have the appropriate paperwork in place to ensure that there are no delays.

Brexit: Withdrawal Agreement and Political Declaration

Debate between Lord Callanan and Lord Liddle

Monday 7th October 2019 Lords Chamber

[Lord Callanan]

I thank the noble Lord for his question, but I understand the issue very well. I have taken part—as he did—in the standard-setting procedure in the European Union and understand very well how it works and how cumbersome it is. I maintain my point. I do not understand why we need to dynamically align to have exactly the same standards as the European Union. We may want to have different standards. Who is to take a view or a judgment on whether standard A is appropriate, different, lesser, or higher than standard B? That is something for this House to decide. We might decide to have an alternative policy which regulates some things in a different way. It is the flexibility to do that which is appropriate. I maintain the commitment of this Government to have higher standards than the European Union, as we do now.

[Lord Liddle (Lab)]

My Lords, one reason why I think your Lordships believe we need to see the legal text concerns the arrangements that are being proposed for democratic consent in Northern Ireland. As I understand the arrangements under the Good Friday agreement, a majority in both communities have to agree to any major change. Why is it that this is being briefed as giving the DUP a veto? Why should not Sinn Féin also have a veto on any change that might introduce a hard border in the island of Ireland?

[Lord Callanan]

The arrangements for decisions in the Northern Ireland Assembly are set out. This is one of the areas that we are prepared to have detailed and intensive discussions on, and we are doing so. I take the noble Lord’s point about publication. I am not ruling out publishing the legal text. We will do so when it is helpful to the negotiation and when we can aid discussions in this House.

No-deal Update

Debate between Lord Callanan and Lord Liddle

Tuesday 3rd September 2019 Lords Chamber

[Lord Callanan]

I always like questions from the noble Lord; they offer a degree of simplicity which perhaps does not always exist in real life.

[Lord Liddle (Lab)]

My Lords, I want to be constructive and say that I think it is very difficult to judge what the consequences of no deal will be. One of the reasons for this is that the Commission has put actions in place that will relieve some of the consequences temporarily. Also, we do not know with what rigour our one-time partners on the other side of the Channel will implement border controls, so there are uncertainties. Does the Minister accept that there will be consequences and that we will end up having to talk to Brussels about them? As a result, does he not think it very important that, if there is no deal, we adopt the most constructive approach possible to relations with our former EU partners? Does he therefore accept that threats of withdrawing the money—our financial obligations under the withdrawal agreement—are exactly counterproductive to what the Government will need to do with our partners, should there be no deal?

[Lord Callanan]

I thought I would be able to agree with everything the noble Lord said, for a change. I completely agree with the first part of his question. That is why, under our arrangements, we look at reasonable worst-case scenarios, because of course we do not know what the precise attitude of partner countries on the other side of the Channel will be. My colleague the Chancellor of the Duchy of Lancaster visited Calais last week and had extremely positive discussions with the French local and regional authorities. It is certainly not their desire to cause unnecessary disruption. However, the noble Lord is also completely correct that we will need to have discussions and make agreements with our European partners either before or after our exit. We have said this. We have a constructive relationship. We hope that the Commission might want to talk about some of these issues before we leave, but if it will not, there is nothing much we can do about it.

On the financial settlement, the financial offer in the withdrawal agreement is effectively a political agreement. We accept that there are some legal obligations; we are a law-abiding nation and we will meet these. However, if the withdrawal agreement is not passed and agreed, then the obligation to pay £39 billion will fall away—some of it has already been paid, of course, because of our extension. We will need to have discussions about precisely what our legal obligations are.

Brexit: Negotiations

Debate between Lord Callanan and Lord Liddle

Tuesday 20th November 2018 Lords Chamber

[Lord Callanan]

It contains measures for protecting financial stability and market integrity, and for the commencement of an equivalence assessment, which is extremely important to many in financial services. But, as I said, this is one of the things that we are fleshing out. This is an outline declaration and the final details are being negotiated as we speak.

[Lord Liddle (Lab)]

Will the Minister give way again?

[Lord Callanan]

I am happy to give way but this is all subtracting from the time that is available for the rest of the debate.

[Lord Liddle]

The Minister suggested to his noble friends that the Northern Ireland arrangement was temporary. Why then is it said in the political declaration that what is set out in the backstop is the basis for the future economic relationship between Britain and the EU? Can the Minister explain that inconsistency?

[Lord Callanan]

It is actually stated in the withdrawal agreement that the backstop is intended to be temporary and is not intended to be a basis for the future relationship. But it says in the future partnership document that the future relationship will build on the customs arrangements that are outlined within the backstop facility. I will let the noble Lord make his own interpretation of those words.

We have worked hard to deliver the result of the referendum and to ensure that the UK leaves the EU on 29 March 2019. We have made a decisive breakthrough. Once a final deal is agreed, we will bring it to the Commons for what is being called a meaningful vote, and of course there will be an opportunity in this House for extensive further debate. The Government understand that the British people want us to get this done and to get on with addressing the other issues they care about: creating more good jobs in every part of the UK; helping our NHS provide first-class care; and focusing our efforts on building a brighter future for our country.

The choice is clear: we can choose to leave with no deal or we can choose to unite and support the best deal that can be negotiated—this deal. It is a deal that ends free movement; that takes back control of our borders, laws and money; that delivers a free trade area for goods with zero tariffs, to benefit our manufacturers; that retains the security co-operation to keep our people safe; and that protects jobs in the United Kingdom. This deal honours the integrity of our United Kingdom. It delivers on the referendum result. It delivers the Brexit that the British people voted for. I beg to move.

Brexit: Withdrawal Agreement Scrutiny

Debate between Lord Callanan and Lord Liddle

Wednesday 31st October 2018 Lords Chamber

[Lord Callanan]

I am happy to answer as many questions as we have time for. I do not know who the other Member was, but I would be happy to take a question from them afterwards. I do not agree with my noble friend Lord Tebbit. We think that the Commission is negotiating in good faith and we hope to reach an agreement. That is in the interest of both sides and we want to do so.

[Lord Liddle (Lab)]

My Lords, I hate to question the veracity of what the Minister said, but the truth is that the Prime Minister told the House of Commons that 95% of the deal was done. That includes a lot of the areas that were not resolved when the draft agreement was published in March. In addition, we know that work on the political declaration that will accompany the withdrawal treaty is ongoing. There has been no attempt to involve Parliament in the content of that declaration, even though some of it might be in square brackets. Will the Government come clean? Basically, they are trying to bounce the Commons into the argument that there is no alternative to what they have agreed except no deal, and they are trying to bounce us into that position, too.

Brexit: Legislating for the Withdrawal Agreement

Debate between Lord Callanan and Lord Liddle

Tuesday 24th July 2018 Lords Chamber

[Lord Callanan]

There is always wisdom in my noble friend’s suggestions but I think whether there should be a Joint Committee of both Houses is a matter for Parliament rather than the Government. We are working through the details with the EU at the moment on exactly what the composition of the joint committee will encompass. However, we expect it to be multilayered, possibly with one level of officials similar to UKRep and one ministerial level as well, but that agreement has still to be made.

[Lord Liddle (Lab)]

My Lords, returning to paragraph 7, which was referred to by the noble Lord, Lord Cormack, paragraph 7.b. refers to Northern Ireland but the only commitment it makes is that,

“the Government has been clear about its steadfast commitment to the Belfast Agreement”.

Is there any reason why, in this document, the Government’s commitment to no hard border has not been put down in black and white or why the amendment that this House passed on Northern Ireland and the avoidance of a hard border, which was accepted by the other place, has not been repeated? Do the Government continue to accept what they accepted in December: that there needs in this withdrawal agreement to be a backstop agreement on the avoidance of a Northern Ireland hard border?

[Lord Callanan]

There was no need to repeat that in the text because it is of course now part of the withdrawal Act, which is the law of the land. We remain committed to there being no hard border and to the backstop, as agreed in December. Negotiations are ongoing with that at the moment and, as I said to the noble Baroness, Lady Hayter, the reason that it is not in this White Paper is because it is not agreed yet.

Brexit: Preparations and Negotiations

Debate between Lord Callanan and Lord Liddle

Monday 23rd July 2018 Lords Chamber

[Lord Callanan]

Of course we are not reneging on the Prime Minister’s words, but my right honourable friend the Secretary of State for Exiting the EU made it clear yesterday that we expect a future partnership to be agreed at the same time; it will sit alongside the withdrawal agreement and no money will be paid unless the future partnership is delivered. In these circumstances, it is the duty of any responsible Government to prepare for every eventuality, including the unlikely scenario that we reach March 2019 without agreeing a deal. It is essential that plans are in place to mitigate the risks and ensure stability, whatever the outcome of these negotiations. The Government’s legislative programme in this Session provides for a range of negotiation outcomes, including that of no deal.

In the last few months we have passed the Nuclear Safeguards Act, the Sanctions and Anti-Money Laundering Act and the Haulage Permits and Trailer Registration Act, preparing the UK for a future outside the European Union. I am grateful to the House for the constructive way it has engaged on this legislation.

We have been taking other practical action to ensure that we have the infrastructure in place—for example, recruiting 300 extra Border Force staff, with a further drive to recruit another 1,000, launched earlier this year. The Government have been working on nearly 300 no-deal plans for almost two years. Some of these are already in the public domain. As we announced last week, over August and September the Government will release a series of technical notices to set out what UK businesses and citizens will need to do in a no-deal scenario. This due diligence is designed to provide reassurance that the Government are prepared.

I note the great number of speakers listed for today’s debate and I look forward to hearing all the contributions. Before I resume my place, let me make it clear that we strive to strike the very best deal with the EU, and whatever the outcome of our negotiations, we stand ready to make a success of Brexit.

[Lord Liddle (Lab)]

Before the Minister sits down, will he answer the question raised by the noble Lord, Lord Forsyth, about the facilitated customs arrangement? Paragraph 17 of chapter 1 of the White Paper states clearly that,

“the UK is not proposing that the EU applies the UK’s tariffs and trade policy at its border for goods intended for the UK”.

I understand that in the other place last Monday, an amendment was carried saying that this arrangement would not come into effect unless the other member states agreed to apply this dual tariff. What now is the Government’s policy on this critical point?

[Lord Callanan]

That paragraph confirms the answer I gave earlier. We will agree a tariff-sharing formula with the EU. That is part of the discussions we will have, but we are not asking other EU member states to change their arrangements at their borders. We do not believe that the amendment passed last week is incompatible with our White Paper proposals.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Lord Liddle

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

[Lord Callanan]

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

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

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

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

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

[Lord Liddle]

The Minister is saying things that directly contradict what the Prime Minister has said: that we will have an implementation period in which we will follow the laws set by the EU without having any say over them. In her Mansion House speech, she said that we wish to maintain regulatory alignment with the EU in a large number of areas. That means following EU laws without having any say in them. Will the Minister accept that point?

[Lord Callanan]

I will not accept that point. We have not agreed anything yet. We are still to have those negotiations.

[Lord Liddle]

Is the Minister saying that he rejects what the Prime Minister said in her Mansion House speech?

[Lord Callanan]

Of course I am not saying that. I am saying that we are in the process of conducting a negotiation. We have said that when have concluded that withdrawal agreement, we will return to this House with the withdrawal agreement and implementation Bill. The noble Lord will be able to make all his points—at great length, no doubt—over and again during that process. He has made those points many times in the course of this Committee, so if he will forgive me I will make a bit more progress and then we can all go out and have an enjoyable evening at the end of this stage.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Lord Liddle

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

[Lord Callanan]

I will read Hansard and respond to the noble Lord in writing.

[Lord Liddle]

The Minister did not answer any of the points that I made about what level of contact the Government have had in Brussels discussing these issues, and why in the interval between the September agreement and March, when the Commission produced its own proposals, Britain appears to have done nothing. Will he please tell us what is going on?

[Lord Callanan]

We are having extensive discussions with our partners in Europe. We are also having extensive discussions with representatives of the rail freight industry and other players in the sector, but as the noble Lord well knows, the arrangements are a matter for negotiation.

[Lord Liddle]

If Brussels can produce a proposal, why cannot the British Government produce an alternative proposal?

[Lord Callanan]

As the noble Lord pointed out, we did produce a customs paper last year. In her speech last week, the Prime Minister referred to two alternative customs arrangements and those matters are being taken forward in the discussions. If the noble Lord reads the Prime Minister’s speech of last Friday, he will see that she referred to them specifically.

[Lord Liddle]

Of course I have read the Prime Minister’s speech. What do you take me for? I follow these things very closely, but the Minister still has not explained how it is that the Prime Minister simply referred to the principles that were put out last summer. This is a situation of real urgency for the economic actors, so why are the Government not producing proposals? Would the Minister be willing to write to me on this point?

[Lord Callanan]

I would be delighted to write to the noble Lord.

--- Later in debate ---

[Lord Callanan]

I will repeat the words that I used, for the noble Lord’s benefit:

“The Prime Minister … acknowledged that an appropriate financial contribution would be necessary and that there will be a role for the Court of Justice of the European Union”.


As I was saying, the precise form and nature of the UK’s future relationship with EASA, as well as continued co-operation with the EU in the field of aviation safety more generally, will of course be a matter for the negotiations. The UK’s geographical position means that, with Ireland, the UK services over 80% of traffic entering or leaving EU airspace from the North Atlantic. Given that, the level of interaction between the UK and the EU demands close co-operation. The Government recognise the need for UK air traffic management arrangements to remain interoperable with the rest of Europe once the UK has left the EU. Safe and efficient air traffic management is a priority for us. The UK’s air traffic management system will remain closely bound to that of our European partners. We seek a close and collaborative relationship in this area, just as in many others. However, NATS will continue to provide the same high-quality service to airspace users that it does today.

The Government also want to avoid disadvantaging industry by imposing additional regulatory burdens. The Bill is part of that: it allows the Government to be clear that we are committed to maintaining a harmonised safety system that benefits both the UK and EU aviation networks and maintains the high safety standards that we all wish to see. I hope what I have said has been reassuring for noble Lords and that they feel able to withdraw the amendment.

[Lord Liddle]

My Lords, what about the point about the affirmative procedure?

[Lord Callanan]

I took on board the noble Lord’s question but I am unable to give him those reassurances at the moment.

European Union (Withdrawal) Bill

Debate between Lord Callanan and Lord Liddle

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

[Lord Callanan]

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

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

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

[Lord Liddle]

The Minister mentioned that it was a parallel European institution. Before we gave that notice, did we actually ask other members whether we could remain in Euratom as a non-EU member?

[Lord Callanan]

It is not a matter of getting a political opinion on this. It is the legal position, as I have set out. When we formally notified our intention to leave—

European Union

Debate between Lord Callanan and Lord Liddle

Monday 6th November 2017 Lords Chamber

[Lord Callanan]

On the subject of defence and security, we have proposed a bold new strategic partnership with the EU, including a comprehensive agreement on security, law enforcement and criminal justice co-operation.

[Lord Liddle (Lab)]

My Lords, regarding the debate on the future of Europe, has the noble Lord read the speech that President Macron of France made at Sciences Po in September, in which he proposed lots of interesting ideas for future co-operation on climate change, Africa, migration, technology and the development of defence procurement? Does he think that the Government might take on board some of those ideas in drawing up the framework for future co-operation and the future relationship, which they are required to do under Article 50?

[Lord Callanan]

I have seen President Macron’s speech. He made some interesting proposals on how the EU should develop. I am sure that we will want to look closely at those and that we will consider them alongside contributions from leaders of other member states.