EU Withdrawal

Lord Hunt of Wirral Excerpts

Wednesday 13th February 2019 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I draw attention to my interests as set out in the register.

I am not certain whether one is permitted to use a term derived from another European language in these fractious times but there is an inevitable element of déjà vu, not only in this debate but at this critical time in this nation’s history. Even as the situation develops in new and usually perturbing ways, it is increasingly difficult to find new things to say, although I admire the skill of my noble friend Lord Saatchi, who certainly broke new ground in his contribution to this debate.

I have always been a great admirer of the negotiating skill of the noble Lord, Lord Hannay of Chiswick, but I hope he will not mind if I say I wish he had been in charge at the material time but that I think it is too late to follow his advice now.

In order to avoid repeating myself, I thought it wise to cast my eye over the various speeches I have made in this place since the referendum result in June 2016. I was relieved to find, slightly to my surprise, that I have been following a remarkably consistent line: first, that we must accept the referendum result; that we must be mindful of the equivocal verdict of the British people in a general election less than a year later; and, perhaps most important of all, that there is a pressing need to address the underlying causes of the vote for Brexit and, in particular, to heal the scars that it will leave.

I have repeatedly called for moderation, for a new common ground. I do not think that has fallen on deaf ears as such but, sadly, the deafening siren call of party interest can too easily drown out the less strident tones of moderation. I congratulate the noble and learned Lord, Lord Hope of Craighead, on an outstandingly brilliant speech, one of several he has made on this subject.

As the intractable impasse over the border in Ireland overshadows us all, I listened carefully to the brilliant speech of the noble Baroness, Lady Bull. Rather like her, I was drawn to that great Irish poet, WB Yeats. I have in mind his Second Coming, which says:

“Things fall apart; the centre cannot hold;

Mere anarchy is loosed upon the world”.

We must not allow that to happen.

As many speakers have pointed out, in June 2016 no one voted to be poorer; no one voted to make our streets or our global environment more dangerous; no one voted to see the City of London relegated from the top of the international premier league to mid-table obscurity; and no one voted to have dark threats—almost incitement in some cases—of civil unrest, sometimes made by public figures who really ought to know better. None the less, those could be the consequences if we do not compromise now and work together in the public interest across traditional political boundaries.

Brexit was always going to entail a daunting process of negotiation. Despite the disingenuous assertions of some political figures, negotiation is by its very nature a multilateral, not unilateral, process. It requires engagement, skill and patience and cannot be brought to a satisfactory conclusion through an evocation of the Dunkirk spirit alone.

My message is simple: we should support the Prime Minister in her endeavours to honour the referendum and the commitments made in 2017, while also protecting our long-term economic and political stability and development. Furthermore, do not let us do so half-heartedly but with passion—the very passion that brought us all into public life in the first place—otherwise Yeats will indeed be casting a lugubrious shadow over us for a long time yet, with his terrible premonition that:

“The best lack all conviction, while the worst

Are full of passionate intensity”.

Let us all hope that the second coming of the withdrawal agreement sees a coming together here, in the House of Commons and right across the nation—because then, and only then, shall we be able to move forward together once more.

Brexit: Withdrawal Agreement and Political Declaration

Lord Hunt of Wirral Excerpts

Monday 14th January 2019 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I first draw attention to my interests as set out in the register, in particular as chairman of the British Insurance Brokers’ Association.

It is no secret that I greatly regret the result of the referendum. In common with the Prime Minister, however, I believe it is right that we respect that result. I recall what one of my political colleagues in Bristol, the late Tony Benn, wrote in an open letter to his constituents in January 1975, which was reproduced in the Spectator:

“We should all accept the verdict of the British people, whatever it is; and I shall certainly do so”.


Having found himself comprehensively on the losing side, he was as good as his word even though his views on Europe never changed. I now find myself in an equivalent position. I want to follow up the words of the right reverend Prelate the Bishop of Lincoln, particularly in his appeal for respect and humility. We must all, however, be increasingly conscious of the real and present danger of a “no deal” or “cliff edge” Brexit on 29 March.

It is possible, perhaps even probable, that the withdrawal agreement and the accompanying political declaration will not be accepted this week. We may not relish that outcome but we must be ready for it. In the space of a week, the House of Commons has effectively indicated on two separate occasions that, in the event of the agreement not gaining majority support, a so-called no-deal Brexit would not be an acceptable outcome. That is why I believe we must now move into the transition or implementation period, in particular seeking to ensure that our financial services sector—which I would argue is the jewel in our economic crown—will continue to enjoy, at the very least, the kind of access to EU markets that it currently enjoys.

One of the most inspirational memories of my lifetime has been the people’s uprising that brought down the Berlin Wall. Even as we leave the institutions of the European Union, let us not—please—get back into the business of building walls. We know where that leads and it is not to freedom.

There is a method, clearly set out in Article 50 of the Lisbon treaty, for a nation state to leave the European Union, and it has been followed. This country signed that treaty in good faith and, as is our habit, we have behaved honourably as we sought to disengage ourselves from it. That required us to negotiate with our EU partners, again in good faith, then to come to an agreement that would maintain both trade and good will. That is precisely what the Prime Minister has achieved.

The agreement may not be perfect, but no agreement ever was, is or will be. We hear a great deal of assertion about what the people voted for in June 2016. The fact of the matter is that the proposal on the ballot paper in the referendum was for the United Kingdom to leave the European Union—no more, no less. The leave campaign did not present a detailed manifesto and there was no menu of choices: soft Brexit, hard Brexit or no deal. The agreement secured between Her Majesty’s Government and the European Union is wholly consistent with the referendum result.

The general election in 2017 saw both major parties, the Conservative Party and the Labour Party, committed to respecting the referendum result. Both increased their share of the vote substantially; between them, they received over 80% of the total votes cast. None the less, there is a full spectrum of opinion, both here and among the wider electorate, and we must take great care not to exacerbate social and political divisions at this difficult time. In the vile treatment of Anna Soubry and others, we see the consequence of overheated and hyperbolic rhetoric. As the right reverend Prelate said, this is a time for calm reflection, not hysteria, and certainly not antagonism.

The Prime Minister seeks to build a consensus and move on. I believe we should wholeheartedly support her in that. If Parliament rejects the agreement, we are heading into uncharted waters, as my noble friend Lord King of Bridgwater reminded us so eloquently at the start of today’s debate. Brexiteers risk losing Brexit. Remainers risk losing everything. This is no time to be playing with fire. In the great British tradition, let us compromise, come together and move on.

Brexit: Preparations and Negotiations

Lord Hunt of Wirral Excerpts

Monday 23rd July 2018 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, in declaring my interests as set out in the register, I welcome the progress embodied in the new White Paper. As the Prime Minister said in Belfast on Friday, a new approach was needed, an approach that,

“needs to honour the Belfast Agreement, deliver on the referendum result and be good for our economy. And for the EU to consider it, it needs to be a proposal that they can see works for them as well as us”.

I wholeheartedly agree that the White Paper will indeed prove to be the foundation of such a proposal and I congratulate all those involved in crafting it.

I turn now to the words of the right reverend Prelate the Bishop of Leeds. I am also concerned about the points he made about culture. As a one-nation politician, I find the continuing talk of the 48% versus the 52% insupportable as well as divisive and dangerous. We must never allow that crude device of a binary referendum to blind us to the complex, nuanced and continuous kaleidoscope that is public opinion. A so-called hard Brexit did not feature on the ballot paper. Equally, not everyone who voted to remain was a devout believer in the concept of ever-closer union as set out in the treaties. Millions of our fellow citizens voted not ideologically but rationally, according to where they perceived the balance of advantage to lie for them, for their families and for the nation. In this debate, as with all political arguments, there is a middle ground, a common ground where surely people of good will can come together and build a mighty coalition around a reasonable and constructive set of propositions. I am sure of one thing: no one voted in June 2016 to be poorer.

The White Paper does much to reassure us that the importation and export of goods will be protected, but as we have already heard, the services sector is not sufficiently dealt with. It now represents around 80% of the UK economy. The UK financial services sector is one of the jewels—perhaps the pre-eminent jewel—in the crown of our modern economy, with insurance at its heart. It is therefore of considerable concern that the White Paper should suggest that the UK might no longer operate under the EU passporting regime. I speak, of course, as chairman of the British Insurance Brokers’ Association. There are almost 3,000 UK insurance brokers with passports to trade in the EU, accounting for about £8 billion of business.

In his HSBC speech on 7 March, the Chancellor of the Exchequer appeared optimistic about the chances of securing a suitable new arrangement, saying that,

“it is hard to see how any deal that did not include services could look like a fair and balanced settlement. So I am clear not only that it is possible to include financial services within a trade deal, but that it is very much in our mutual interest to do so”.

In paragraph 49(d) of the White Paper, there is a commitment to negotiate a,

“new economic and regulatory arrangement for financial services”.

There is also encouragement to be found elsewhere—for instance, in paragraphs 63 and 65. But are vague words enough, at this rather advanced stage? Equivalence in insurance relates to standards for capital, supervision and reinsurance, and there is now a fear within the industry that it might retain EU regulation and rules while losing market access—the worst of both worlds. It is still not too late to seek a bold new agreement that would preserve tariff-free access and/or authorisation for UK brokers.

Even after Brexit, the City of London can, must and will continue to be a vital, pivotal asset—and a vital, pivotal European asset. Furthermore, as we build this new relationship with the EU, we must not only signal our determination to protect the jobs and welfare of our people, but reaffirm our continuing leading role in the western alliance as a proud, free and outspoken people, standing shoulder to shoulder with our neighbours, friends and allies, in good times and in bad. It is very much in all our interests that the voice of financial services should continue to be heard and heeded as that relationship begins to take shape.

I conclude by quoting the excellent Ruth Davidson, who wrote over the weekend:

“We have a duty to serve the public in the national interest, to deliver the Brexit referendum result in a way that mitigates risks and maximises opportunities ... That means compromise, whichever side of the debate we were on two years ago”.


To paraphrase the celebrated sentiments of that great Englishman and proud European Winston Churchill, the situation demands rather less defiance from those who lost the referendum and more magnanimity from those who won it. For many of us on these Benches, compromise is not a dirty word: it is the necessary foundation of any approach that will heal the ugly scars that the referendum has left behind it, and the one and only way to restore one nation.

European Union (Withdrawal) Bill

Lord Hunt of Wirral Excerpts

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

[Lord Hunt of Wirral (Con)]

My Lords, we are very grateful to my noble friend for raising a very important issue. I know that the hour is late but I declare my interests as a partner in the law firm DAC Beachcroft in the financial services industry and as chairman of the British Insurance Brokers’ Association, known as BIBA. In the light of those interests, it will come as no surprise to the Committee to know that I spend a great deal of time talking to insurers and brokers, and many of them share the anxieties that have prompted my noble friend and the noble Baroness to put forward this amendment.

I think that all those who have spoken have welcomed the speech made by the excellent Chancellor of the Exchequer, with his determination to ensure that financial services lie at the heart of any new free trade deal with the European Union post Brexit. However, as the noble Baroness has just pointed out, some of the larger insurers have already begun to make provision for Brexit by relocating elements of their activities out of the UK to ensure that they remain in the jurisdiction of the EU—although I am still finding a strong desire and commitment to continuing the remarkable success story of the insurance sector in the UK post Brexit.

I have no time at all but I urge the Minister to give us assurances that committed engagement and genuine consultation with those affected will take place in a timely, orderly and constructive fashion. Insurers and their customers will be looking for reassurances that their legitimate interests will be protected during any changes in policy that are made or even considered during the transposition process. Obviously there is much more to say, particularly about the role of regulators, as my noble friend Lord Trenchard mentioned, but these are very important issues and I hope that the Minister will respond in a very positive way.

[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.

European Union (Withdrawal) Bill

Lord Hunt of Wirral Excerpts

2nd reading (Hansard - continued): House of Lords
Wednesday 31st January 2018 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I declare my interests as set out in the register, in particular as a partner in the global commercial law firm DAC Beachcroft and as chair of the British Insurance Brokers’ Association.

As we all know, the purpose of a debate at Second Reading is to discuss the principles underlying a piece of proposed legislation. Rarely in my experience as a parliamentarian has it been more important for us to be clear in our minds about what a Bill is and what a Bill is not. This Bill is not designed to initiate Brexit, as my noble friend Lord Ridley so forcefully pointed out yesterday. It is a vehicle for dealing with the consequences of Brexit, and for maximising the opportunities we derive, while minimising the risks and potential collateral damage. As my noble friend Lord Hill of Oareford said:

“In some ways, it is quite a boring Bill”.—[Official Report, 30/1/18; col. 1388.]


But as my noble friend the Leader of the House stressed at the start of this debate:

“It is vital to a smooth and orderly exit from the EU… to honour the referendum result”.—[Official Report, 30/1/18; col. 1373.]


In the absence of the Bill, legal rights would inevitably be affected overnight, in a disorderly fashion, which would critically undermine the rule of law and almost certainly overwhelm our courts. Of course, much so-called EU law does not need the assistance of the Bill to remain in force. It has been passed in primary or secondary domestic legislation and does not, or does not exclusively, derive force from the EU treaties or the European Communities Act 1972.

I commend to the House last week’s report by the Constitution Committee, of which I have the privilege to be a member, and welcome the comments that have been made at various stages of this lengthy debate about our recommendations. In contrast to the hyperbole attendant on the release of our report, the possibly less exciting reality is that it provides helpful and positive suggestions to ensure the Bill does the job for which it is intended: helping to ensure Brexit can be made as smooth and painless as possible. It also potentially creates the basis for a consensus on how to make the best of Brexit. My noble friend Lord Strathclyde was right to advise:

“If the Bill is to be amended, then let it be done with co-operation and consultation between Back-Benchers and Ministers”.—[Official Report, 30/1/18; col. 1408.]


Such a consensus would greatly enhance our negotiating position.

In dealing with retained EU law, this Bill is necessarily origin-focused and content blind, which could have arbitrary, unforeseeable and, sometimes, undesirable effects. There must be a significant body of EU-derived law which the UK would have adopted in any event, in the same or very similar form. Obvious examples that have been mentioned are to be found in the equalities field and financial services regulation. The practical need for at least some so-called retained EU law post-Brexit does not, of itself, justify creating an executive correction power, still less prescribe the precise scope or form of any such power. We must ensure that any correction power is compatible with the vital principle that the Executive must be genuinely accountable to the legislature.

Many fear that one unintended consequence of Brexit could be the emasculation of the UK financial services sector. It is vital that the UK, in negotiating a new free trade agreement with the EU, ensures the unbroken maintenance of mutual market access for financial services, ensuring continuity of cover and protection. A suitable transition period will be vital, and so too will mutual recognition of prudential regulatory regimes. Both motor and travel insurance require special attention too. I hope we shall maintain a free circulation zone without reintroducing an onerous green card requirement. Like the noble Lord, Lord Crisp, I also very much hope this Bill will help enable the UK to maintain a reciprocal emergency health agreement with our friends in the European Union.

This Bill is but one part of a testing and complex process—a vital part, but one of many. The road ahead is uncertain and it will be challenging to us all. I believe, however, that our debates here in the next few weeks will show this House at its serious, erudite and constructive best.

Article 50 (Constitution Committee Report)

Lord Hunt of Wirral Excerpts

Tuesday 22nd November 2016 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I declare my outside interests as set out in the register and in the fourth report of the Select Committee on the Constitution, of which I am a member. I join my noble friend Lord Lang of Monkton in commending this report warmly to the House. I pay particular tribute to our clerk, Antony Willott, and his entire team, all of whom did a first-class job, ensuring that we heard all the necessary evidence and marshalled our arguments effectively. The fourth report of the European Union Committee, which has just been introduced by the noble Lord, Lord Boswell of Aynho, is also an excellent piece of work.

The House does not need me to remind it that we are in extremely choppy waters and largely uncharted waters at that. In the run-up to the referendum it soon became abundantly clear that a substantial majority of parliamentarians in both Houses felt that it would be in the best interests of the United Kingdom to remain within the European Union, but the people of the country were not persuaded. Much has rightly been made of the fact that the referendum was technically consultative and not binding, but that was done deliberately and after much thought, and it was approved by Parliament. That was not an accident. It was done in my view not to empower Parliament to ignore the will of the people but to ensure that Parliament should continue to play a vital historical role in safeguarding the national interest whatever the result of the referendum.

I join my noble friend in quoting from paragraph 24 and the reference to how constitutionally inappropriate it would be for the Executive to act on an advisory referendum without explicit parliamentary approval. The big decision of whether to remain within the political institutions of the European Union was handed to the people of the United Kingdom, but it was never intended to change the fundamental nature of our delicate constitutional balance, which has evolved over centuries. Indeed, one of the most powerful arguments on the leave side was that we need a reassertion of the authority and role of the United Kingdom Parliament in our national life.

On 3 November the High Court issued its judgment on the so-called Brexit case, and I join my noble friend in regretting the rough and tumble that that judgment received in the press the following morning. As various Ministers have subsequently reaffirmed, a free and independent press is an important element of our way of life, but so too is an independent judiciary and it should never be unfairly traduced for doing its job when others have demanded that it should. For many of us, the coverage of that judgment was both unfair and personally unkind. The key part of the judgment is set out in paragraph 5 where the High Court said:

“It is agreed on all sides that this is a justiciable question which it is for the courts to decide. It deserves emphasis at the outset that the court in these proceedings is only dealing with a pure question of law. Nothing we say has any bearing on the question of the merits or demerits of a withdrawal by the United Kingdom from the European Union; nor does it have any bearing on government policy, because government policy is not law”.

That statement is accurate and it puts paid to any suspicion voiced by some that the High Court was actively and inappropriately engaged in seeking to extend its remit.

Even I believe, however, that this state of affairs is a matter of some regret. The Government and Parliament were more than capable of working this out for ourselves, as these two excellent reports demonstrate. There is no criticism of anyone in this, but the involvement of the courts is an unnecessary sideshow as we all seek to protect the best interests of the nation at a time of great uncertainty. In responding to that judgment the Secretary of State, David Davis, stated:

“To leave the European Union was the decision of the British people. It was taken after a 6:1 vote in this House to put that decision in their hands. As the Government told voters: ‘This is your decision. The government will implement what you decide’—no ifs, no buts. So there can be no going back; the point of no return was passed on 23 June”.—[Official Report, Commons, 7/11/16; col. 1255.]

Whatever my views were in the run-up to the referendum, I can only agree with and echo the Secretary of State’s words now. I also agreed with the crucial point made in another place by the Prime Minister on 24 October, when she said:

“The UK is leaving the EU, but we are not leaving Europe, and we are not turning our backs on our friends and allies”.—[Official Report, Commons, 24/10/16; col. 26.]

The question now therefore is how best to proceed and how best to ensure that the national interest is protected as we move forward to a future outside the structure of the European Union. Perhaps I am just cautious by nature but, so far as the interests of British business are concerned, I strongly feel that we in this place need to think long and hard about how to deal with the customs union and the single market—which I remind many of my colleagues on this side was largely the invention of a Conservative Government led by the late Margaret Thatcher.

As my declared interest, I disclose a long-standing connection with the world of financial services, particularly with insurance. I believe that the UK insurance and reinsurance sector is the jewel in our crown, bringing much-needed stability to businesses, individuals and families, and in times of crisis to the economy as a whole. I must tell this House that there is considerable concern in the insurance sector and the crucial broking community about the terms of our departure from the European Union. More than 2,750 UK insurance brokers passport out to the EU and more than 5,700 passport in. The UK is the leading general insurance market in Europe. Members of the Association of British Insurers wrote around £3.6 billion using EU branches last year. For us to maintain this position, many colleagues in the wider insurance sector have told me in no uncertain terms that it is vital that they should be able to continue trading freely in the European single market once we have left the EU.

That is why I hope that Ministers will seek to secure an agreement on transitional arrangements for financial services before that definitive new trading agreement with the EU is negotiated. It is unlikely that a reliable agreement on passporting arrangements could ever be agreed in a short, two-year period. I would go further: surely we now operate on a five-year cycle, so I urge my colleagues to do their best to persuade our partners to agree an extension to five years. That would also enable the British public to have their say in the customary manner on the negotiated outcome at the general election in 2020.

The calm, considered and informed discussions that are the hallmark of this place are inevitably very different from the trademark cacophony of a national referendum campaign. The advocates of different forms of Brexit may all claim a popular mandate for the particular outcome that they seek, but it is not true. For better or worse, we live in an age in which public confidence in politics and politicians is at an embarrassing all-time low. When we said in our report that there must be a role for Parliament in the process of triggering Article 50, we were not attempting to arrogate to ourselves the capacity to overturn the referendum. There is and must be no question of setting ourselves above the people. Sovereignty ultimately belongs to the people; they entrust it to us on a temporary basis only. This is not merely about the amour propre of parliamentarians. On the contrary, we are seeking the opportunity to prove how effective we can be in taking a mature and balanced view as we work to defend and promote the national interest in the challenging times ahead.