European Union (Withdrawal) Bill

Lord Hannay of Chiswick Excerpts

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

[Lord Hannay of Chiswick (CB)]

My Lords, I am in favour of the amendment. I shall also add a bit of history that has not been mentioned so far. This time last year we were considering the Article 50 triggering Bill. An amendment was moved by a number of us that was designed both to produce a meaningful process for the end of the negotiations and to include within it the circumstances in which there was no deal. That amendment was passed by a very large majority in this House. It was sent to the other place where it was rejected in a pretty perfunctory way by, of course, the Parliament that was sitting before the general election, and in which the Conservative Party had an overall majority. So it is no good saying the Government are not opposed to a parliamentary statutory decision-making process if there is no deal. They are opposed to it; they opposed it only a year ago. So if this amendment is being brought forward now, it is because the Government have form on this matter.

I would like the Government to recognise that, having lost the vote on the meaningful process in the other place to Mr Dominic Grieve’s excellent amendment, it is more sensible to accept the statutory process for dealing with any outcome to the negotiations, whether that be a deal or no deal or whether it is the case, as I rather suspect now, that the Government have stood their mantra on its head and are now saying a bad deal is better than no deal. But whichever way we look at it, let us be quite sure that Parliament has its say. That is why I support the amendment.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I think the noble Lord, Lord Jay, was a little modest, because it was he who was chairing the European Union Committee at the time when it produced its excellent analysis of what it would mean for there to be no deal and for us to leave on WTO terms. We would have to rapidly set up customs posts around our market. Indeed, as he said, it would also mean no protection or continuation of residence, work or health rights for UK citizens living in the EU or, indeed, for EU citizens resident here. In the latter case, of course, we could pass domestic legislation to safeguard their position but we could not do the same to help UK nationals abroad because no deal would also mean no transition period.

I am sure that for business, as the noble Baroness, Lady Wheatcroft, has just spelled out, that would be a catastrophic outcome. It would mean that in addition to what it would mean for their order books—a rush to set up customs, VAT and all the other stuff that goes with that—I maintain that it would entail a jolt to our economy that would make 2008 look like a kiddies’ party. So a decision to depart from the EU in those circumstances is one to be taken by Parliament, not by the Prime Minister nor even by her Cabinet. The amendment is aimed to ensure that any such decision—coming out without a deal—would be made by Parliament, and bring the no deal scenario within the ambit of the amended Clause 9(1).

We accept that the Government are working very hard to ensure that we do not depart without a deal, and I trust that in those circumstances, they will accept the amendment.

--- Later in debate ---

[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.

[Lord Hannay of Chiswick]

Perhaps the Minister can give an easier commitment, which is that the Government will use the period between now and Report to draft a provision which has that effect and catches a no-deal situation. I am sure we should be delighted. He has a whole team of draftsmen at his beck and call, so perhaps he could make good use of their Easter recess.

[Lord Callanan]

I am delighted to hear that I have all these people at my beck and call; it seems to have escaped my notice.

I remind the Committee that we are confident that the UK and the EU can reach a positive deal on our future partnership, as we believe that this is in our mutual interest. However, a responsible Government must be prepared for all possible outcomes. To invalidate the Clause 7 power in the absence of an agreement would eradicate a crucial part of our preparations. Putting the issue to one side, I respectfully disagree with the intention of the amendment—that parliamentary approval should be required to leave the EU without a deal. There should be one fundamental fact sitting behind all these debates: the UK is leaving the EU. As noble Lords have heard me say before in Committee, and on which I have been questioned at length, the decision to hold a referendum was put to the electorate in the 2015 general election. That decision was then put into statute in the European Union (Referendum) Act. The referendum was held and delivered a majority in favour of leaving the EU. Parliament then consented to act on that verdict through the European Union (Notification of Withdrawal) Act.

I do not normally read the Observer, but as Keir Starmer had given an interview I thought it would be appropriate for me to read what he had to say on behalf of the Labour Party. It had some interesting quotes. He said:

“Article 50 was triggered a year ago. It expires in 52 weeks and a few days, and I don’t think there is any realistic prospect of it being revoked”.