European Union (Withdrawal) Bill

Lord Hamilton of Epsom Excerpts

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

[Lord Davies of Stamford]

My Lords, as I have explained, I do not accept that we are in any way under instruction from anybody. I have heard the word “instruction” and it deeply shocks me. As a matter of fact, I heard it from the then Leader of the House in the days following the referendum. For the reasons that I have already set out and I do not need to repeat, that is a pernicious doctrine that is extremely dangerous in its constitutional ramifications and should be rejected.

[Lord Hamilton of Epsom (Con)]

My Lords—

[Lord Davies of Stamford]

I will not give way for the moment; I would like to make a bit of progress.

I agree with the noble Lord, Lord Wigley, that even if you were to believe that we are under some kind of instruction relating to Brexit it certainly could not apply to the issue of our remaining in the customs union or the single market. I do not remember that issue being mentioned at all in the referendum, certainly on the customs union. As we all know, there was nothing on the ballot paper about it. The noble Lord, Lord Robathan, intervened to say that he remembered some mention of it by certain people during the campaign. I would be very interested if he could put on record the particular dates, times and places where those comments were made, because I reckon I was pretty alert to what was being said during that campaign, in which I took an active part. I never heard the issue of our remaining in the customs union being dealt with at all, let alone seriously analysed and considered. I do not think that the British people had any chance on that occasion to express a preference one way or the other on that matter. As the noble Lord, Lord Wigley, said, that is a matter of practical fact. Parliament must be sovereign and must take what will be a very important decision.

We all know the potential damage that this country will suffer from Brexit. A lot of it will be from our leaving the single market. Admittedly, some of that damage can be mitigated by our signing a free trade agreement with the EU, but that will not cover financial services, which is such an important part of the country’s economy. There will be great damage from our leaving the EU, even if we are able to sign such a free trade agreement.

On the issue of the customs union, an enormous range of businesses, sectors and companies see this as an existential threat to their continued survival in this country. That goes across all kinds of people, from automotive to aerospace, pharmaceuticals, the nuclear industry and the airline industry. Noble Lords are familiar with the arguments and the very depressing projections made by people from those industries about the costs that they would incur if we leave the customs union.

What is extraordinary is that we have not really heard any of the benefits. It is extraordinary that you can make a proposal for something involving undoubted costs—we can all disagree about the costs and what their extent might be, but we cannot possibly disagree with what sign is on the variable in the equation: it is a negative. The idea that we should incur costs and risks without really knowing what the potential countervailing benefit is seems extraordinarily perverse. No business would manage itself on that basis.

When you press the Government they say, “We need to leave the customs union because that enables us to sign customs agreements or free trade agreements with other countries outside the EU and outside those countries which have themselves free trade agreements with the EU at the present time”. When you actually look at the prospect of doing that you see that it is a mirage; it does not exist at all. Let us take the United States, which spent eight or nine years failing to negotiate the TTIP with the European Union, as the Committee knows very well. Those negotiations broke down partly because of disagreement about the investment guarantees that the Americans were demanding and partly because of the demands being made by the Americans about access for their agricultural products to the single market. Anybody who knows anything about America knows perfectly well that it is inconceivable that an American Administration, let alone a Republican Administration backed by so many Senators and Congressmen from the prairie states and farm states, would ever ratify a free trade agreement with anybody that did not include agricultural products. If it includes agricultural products, of course it includes hormone-impregnated and antibiotic-impregnated beef and chlorinated chicken. Are the British people any more likely than their continental partners and neighbours to accept such products on the market? Would they accept the very appalling animal welfare standards which the Americans have? They have virtually zero grazing for well over 90%, if not very close to 100%, of their cattle at the present time. The idea that you can go through Texas and see lots of longhorn being herded by cowboys as you could 100 years ago is wrong: you will not see a single Texas Longhorn now out in the open air. Those problems will remain and in practice I believe they will be insuperable for us, just as they have been for the rest of the European Union.

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[Lord Hamilton of Epsom]

Can the noble Baroness tell the House what happened before the Republic of Ireland and the United Kingdom joined the EU? At that stage there was a seamless border between two separate countries.

[Baroness Kennedy of The Shaws]

Is the noble Lord at all aware of the number of times there were bombings of customs posts? Is he aware of the number of times there were attacks on those who policed the border? Do we really want to revisit that past? It seems that many do.

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[Lord Tyler (LD)]

My Lords, I do not wish to emulate either the forensic skill or the eloquence of those who have already contributed to the debate but rather ask the Minister a very specific question. He will be aware that in Clause 14—the interpretation clause—there is a specific reference to exit day, which is spelled out in subsection (4):

“A Minister of the Crown may by regulations—


(a) amend the definition of ‘exit day’ in subsection (1) to ensure that the day and time specified in the definition are the day and time that the Treaties are to cease to apply to the United Kingdom, and


(b) amend subsection (2) in consequence of any such amendment”.


As the noble Lord, Lord Hain, said, that is secondary legislation. The Minister will be only too well aware that the Delegated Powers and Regulatory Reform Committee, on which I serve on behalf of your Lordships’ House, is already very critical of the number of powers that Ministers are taking under this Bill, not least because it sets a precedent for powers that will be expected by Ministers under subsequent Bills in the series that relate to Brexit. Therefore, it is important for your Lordships’ House to be told very clearly at this stage by what process the Government intend to put that secondary legislation before the two Houses of Parliament. Will it be by the negative resolution, the affirmative resolution or, indeed, the super-affirmative resolution, as that completely changes the way in which Parliament will be able to exert its control, as noble Lords have suggested? If the process is to be undertaken by negative resolution, that is very limited and the powers of the two Houses of Parliament would be so undermined as to be laughable. If it is to be done by the affirmative resolution, there is more opportunity for discussion and either House can decide what should be done in those circumstances. However, I suspect we will be told that this has to be done with such speed that it will have to be done by an accelerated process, which will inevitably mean that there is no proper opportunity for either House to decide whether we agree with this process.

The super-affirmative process may well be selected. The Minister may be better informed than most Ministers on the Government Front Bench but I defy him to spell out to the House this evening which of these options will be put in place. This is of critical importance. We should not just sweep away this opportunity to take this decision. As all noble Lords who have spoken in this debate have said, it is an extremely important one which will colour the views of your Lordships’ House when we look at some of the other powers that Ministers seek to take under the Bill. Again, I refer to the recommendations of the Delegated Powers and Regulatory Reform Committee. If we really are taking back control, here is an early opportunity for the Government to show who exactly is taking back control.

[Lord Hamilton of Epsom]

My Lords, I am somewhat confused by this debate because it has been suggested that the Government have taken a hard line in saying that a decision should be reached on our future relationship with the EU by 29 March next year. It is not the Government’s date; it is the Article 50 date as drafted—as the noble Lord, Lord Hain, acknowledged —by the noble Lord, Lord Kerr of Kinlochard, one afternoon in his garden in Brussels, when he decided that it should be two years from the moment when Article 50 was moved. Therefore, it is not our date, it is the EU’s date, or, more precisely, the date of the noble Lord, Lord Kerr. I do not quite know why we are now saying that somehow this is the Government taking a hard line. When the House of Commons voted by an overwhelming majority to move Article 50, surely that was on the understanding that the negotiations would be completed in two years from when it was moved. Therefore, we now seem to want to go against the other place and tell it that it has decided on the wrong date.

On top of that, the EU has made it clear that it wants the negotiations to be completed not by 29 March 2019 but by October or November this year, so it is bringing the date forward. I do not accept the remarks of the noble Lord, Lord Triesman, on deadlines. Perhaps he found deadlines inconvenient when he was a trade union negotiator, but it strikes me that they are the only thing which works when you are negotiating with the EU, and that everything seems to be decided at the last minute. It is important that we keep to 29 March next year and I would be very unhappy if that were changed.

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[Lord Kerr of Kinlochard]

I should like to respond briefly to what the noble Lord, Lord True, has said. He refers to the Article 50 date. Without deciding where we wanted to go, we chose to send in an Article 50 declaration on 29 March. That meant that we chose when the clock would start ticking. That is my answer to the noble Lord, Lord Hamilton—like Nelson, I cannot resist provocation from a Hamilton. However, there is not a single Article 50 date. There is provision in the article for the possibility of an extension and there is also provision for the exit date to be after the two-year period. If you read the article carefully, you will see that you are out after two years or when the withdrawal agreement comes into effect, so there is the possibility of a post-dated cheque.

In my view, the noble Lord, Lord Triesman, is exactly right. Flexibility in negotiation is extremely important. Giving yourself deadlines is crazy, as is surrounding yourself with red lines. The reading of Article 50 by the noble Lord, Lord Hain, is, in my humble view, completely correct. However, the big point in this debate is not that; it is the question of who takes back control. Who decides? Is it the Executive or the legislature? So the point raised by the noble Lord, Lord Tyler, is extremely important.

I end by saying that I warmly welcome what the noble Lord, Lord True, said about the Good Friday agreement and the Belfast treaty of 1998, and in particular what he said about Prime Minister Major. To someone like me who was an observer at the time, it is completely correct. I remember when the leader of the Opposition, Mr Blair, went to Washington when I was the ambassador there. He was asked about Northern Ireland and what he would do if he became Prime Minister. His reply at my dinner table to assorted Senators and the Vice-President was that he would try to do exactly what John Major had tried to do and he would be very pleased if he could do it half as well. It is very good to hear that the solid voice of the Conservative Party is not that of the Patersons and Hannans but is in favour of retaining all the good work done by the Conservative Government and then by Mr Blair’s Government in that astonishing first year.

[Lord Hamilton of Epsom]

If the House of Commons voted by an overwhelming majority to move Article 50, surely that was done on the understanding that the negotiations would be completed in two years. If the date was to be changed, surely that would need a vote in the other place.

[Lord Elton (Con)]

Perhaps I may ask a question for elucidation—I may have missed something. The noble Lord, Lord Adonis, and others have spoken as though Parliament is not to be consulted by the Minister making the order. However, paragraph 10 of Schedule 7 states:

“A statutory instrument containing regulations under section 14(4) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament”.


It may not be sufficient scrutiny, but there is scrutiny—Parliament is not being completely bypassed.