European Council

Lord Newby Excerpts

Monday 26th June 2017 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating the Statement. The European Council focused on work being undertaken across the EU to protect its citizens in counterterrorism, security and defence, external borders and illegal migration, and economic development. These are clearly issues on which co-operation at the highest levels is essential and a key priority for the EU. It must be hard for the Prime Minister at such Council meetings, because although on those specific issues our priorities are shared, this country’s priority is not how EU members tackle those together in the future. A quick glance at the Government’s programme in the Queen’s Speech shows that they are going to be preoccupied with Brexit throughout this Session, so I am a bit curious about the Prime Minister’s role at these summits. Our joint work across the EU, on which the UK has taken a lead, on tackling serious and organised crime, including terrorism, is essential. We share common goals, and in order to be effective we must have joint responsibility. However, as the EU discusses future work, it is our priority—and this will take the attention of our Prime Minister—not to be part of that work.

Given the seriousness of those issues, what was the Prime Minister able to say to the Council meeting on both defence and security about the UK response and responsibilities? Specifically, did she take part in discussions on the improvements of the European travel and authorisation system to enhance external border controls? Will that be taken into account in discussions about how to manage the border with Ireland to ensure that there are no changes from the current position? At the weekend, in a TV interview that others may have seen, the Brexit Secretary made some suggestions about how that could be managed. I have to say that he sounded unconvincing, even to himself. He should understand the need for clarity on this issue as soon as possible, but instead he spoke about issues such as monitors on cars and number plate recognition. The Irish border is not like the Dartford tunnel. This has to be resolved as a matter of urgency.

I want to pick up the issue of digital Europe. Is it not something of an irony that while the European Council was discussing an overarching approach to digital issues, including cybersecurity, our own parliamentary network was under sustained attack? I think the whole House will want to thank all our staff who have sought to resolve the problem and assist colleagues. Given that the digital economy knows no physical boundaries, and that UK exports of services are an important growth area of our economy, I would be interested to know what contributions the Prime Minister was able to make on this specific issue.

There was considerable discussion at the Council of the single market and trade, recognising the benefits and addressing areas where improvements are needed. One of the issues discussed was the European Fund for Strategic Investments. In the Council’s conclusions there is a call for rapid agreement on the extension and reinforcement of that fund.

That fund has provided £184 million for the northern powerhouse investment fund. I know that the noble Baroness and the Prime Minister have previously been clear that we are in until we are out and that we remain a full and functioning member of the EU until Brexit negotiations are concluded. Given the importance of that particular investment, can the noble Baroness assure us that no part of it will be lost to Brexit, and what advice would she give regarding further applications to the fund from the UK?

Turning to EU agencies, the background note stated that the EU 27 were to agree the procedure regarding the relocation of the European Medicines Agency and the European Banking Authority from the UK as a consequence of Brexit. There are several issues to be addressed. I understand why the EU has pushed the decision on relocation back to November, but for the UK these issues are live and need to be addressed now. I understand that more than 1,000 staff are employed in those two agencies. Can the noble Baroness confirm that? Do the Government know how many UK staff are employed by other EU agencies and the status of their position?

Outside the EU, we will need mechanisms, organisations or quangos to undertake the functions of those bodies and the other EU agencies of which we will no longer be part. We are all aware of the significant public safety issues that can arise and the economic implications that flow from effective regulation. Has any estimate been made of the cost involved in establishing new structures or agencies, what form they will take and how long it will be before we set them up? If we look at the European Medicines Agency alone and the importance of pharmaceuticals to public health and the economy, surely the Government must have a plan in place to address those issues. I think particularly of pharmaceutical companies, which currently invest significant amounts in research and development here in the UK because they want access to those European markets. Can the noble Baroness share the Government’s initial thinking on this issue with us?

Finally, we come to the point about certainty for EU and UK nationals. From the background notes to the Council meeting, it is clear that there was a short space at the end of the dinner on Thursday and before the session for the rest of the EU members on Brexit where the PM had the opportunity to “inform the leaders” about Brexit negotiations. As predicted, this issue has caused tensions. I have not yet had time, as I am sure other noble Lords have not, to digest all the implications of the new documents, but others across the EU apparently do not share the PM’s confidence that there was a “very positive” response. Reading the comments of other leaders, I would describe them as being underwhelmed but clearly open to further discussion.

I have had a brief look at the document. It seems quite complicated, and I am grateful to the noble Baroness for reading out some of the details. It seems that the Government have now come round to the idea of an identity card, although I am not clear exactly how it will work when the only people who will carry them are EU nationals residing in the UK. The noble Baroness talked about a light-touch approach, but it seems grossly inefficient and disrespectful that 180,000 people who have applied for permanent residency will now have to apply again under the new system. Surely there is a better way to resolve that for those people.

I also understand that under the new arrangements there will have to be an assessment of conduct and criminality. Is the noble Baroness sure that all those can be undertaken within the two years between now and the exit from the EU? If some of them will be undertaken later, what guarantees have been made about access to EU databases so that the accuracy of that information can be checked?

We are talking about citizens from the other 27 EU countries living in the UK whose rights we seek to protect. There are also UK citizens living across the other 27 countries, many of whom have reacted with dismay to the Prime Minister’s comments. But there is also a third group. There are about 60 million UK citizens living here in the UK who will also have their rights affected. All these discussions focus on the rights of those who are already established here in the UK, or on UK citizens already living and working in one of the other 27 countries. But the future impact on UK citizens who want to travel, live and work abroad must also be addressed. Will they need visas? Will they need work permits? The Select Committee report on acquired rights is very helpful on some of these issues.

When your Lordships’ House agreed to the amendments on the Article 50 Bill, by a majority of 102, to protect the rights of EU citizens, it was not because we were being difficult or, as some claimed, trying to oppose Brexit. It was precisely because we recognised, as did the Select Committee report, that this is a difficult issue, and resolving it in a simple and straightforward way would not only give certainty but would ensure negotiations to proceed on key issues in a better tone and a better atmosphere.

The Government worked hard to make sure that that amendment was not agreed by the House of Commons. There were meetings at Downing Street and promises were made that this would be resolved quickly as an early priority, all in pursuit of a so-called clean Bill. I have to say that I wonder whether this House would vote the same way on that amendment.

As we have heard, nothing will be agreed until everything is agreed, so meanwhile there is a twilight zone of uncertainty for many. That is already having an impact. We have heard from the Nursing and Midwifery Council that there has been a 96% reduction in the number of nurses from the EU registering to work in the UK since the referendum. How many of our citizens have lost out on work in the EU?

The new editor of the Evening Standard said that all Cabinet Ministers backed David Cameron in wanting to address this issue immediately after the referendum result, but the then Home Secretary, now the Prime Minister, held out against it. Perhaps the EU’s proposal should have been used as a starting point for the Prime Minister to try to resolve these issues.

Finally, I appreciate that these issues are difficult for the Prime Minister. I was struck by President Tusk’s comments at the end of the Council meeting. He said:

“Brexit took up very little time at this European Council. We devoted most of our work to addressing people’s concerns over security, illegal migration and uncontrolled globalisation”.


These are the concerns of citizens everywhere, and a challenge for the Prime Minister is to make sure that these issues, plus jobs and the economy, remain at the top of our agenda for the UK while she negotiates Brexit.

[Lord Newby (LD)]

My Lords, I too thank the noble Baroness the Leader of the House for repeating the Statement. The two principal issues debated at the Council that are of relevance to the UK were, first, security and, secondly, citizens’ rights.

On security, the Prime Minister rather patted herself on the back that she had taken the lead in having had discussions with President Macron and then, at the Council itself, in moving the technology companies to responding more effectively to extremist content. It is clear that whatever happens over the coming months in respect of the technology companies, the area of security, which faces the whole of Europe, will not become less of a priority or less of a concern. My question for the Government is: what plans do they have to have a continuing voice on European discussions on security? They will not be at the EU table. Will they put proposals to the EU about how they will have a continuing voice in European security discussions? If we lose that voice it will undoubtedly be the case that the UK will be less secure.

The biggest area of interest for the UK, not so much in the summit but subsequently, is around citizens’ rights. We have now seen the Government’s paper. As the noble Baroness, Lady Smith, pointed out, when your Lordships’ House debated this issue four months ago, it took the view that the UK should unilaterally guarantee the rights of EU citizens in the UK. We on these Benches continue to believe that the Government should unilaterally guarantee EU nationals the right to stay in the UK now. It is to be regretted that it has taken so long for the Government to attempt to provide any certainty about their future status. The very fact that the Government have today announced a series of issues and proposals that are dependent on reciprocal decisions by the EU means that there is still no certainty or clarity for EU citizens living in this country.

I turn to some of the specific proposals in the Government’s document today. First, there is still no specified cut-off date. Can the Leader of the House explain why the Government have left that open and, in doing so, extended the uncertainty of people who are thinking about whether they might come from the EU to the UK at some point over the next couple of years, when they could have made a decision to specify the date today? At what point and by what process do the Government plan to announce a cut-off date?

Secondly, it is not clear how long the application process for residence status will take. We know about the huge backlogs in dealing with such questions at the moment. Do the Government plan to resource the relevant agencies properly so that applications, albeit in their cut-down form, can be dealt with speedily? What assessment have the Government made of how many EU citizens currently resident in the UK will need to apply for the new residence status?

The Government talk about avoiding a cliff edge at the point at which EU citizens cease to be able to settle freely in the UK, and propose a two-year period during which there will be a generic umbrella of temporary leave to remain. Do the two years apply to the period during which EU citizens must apply for residence status, or do the Government envisage that we will have processed all requests for residence status within the two years—and, indeed, that everybody wishing to achieve that status will need to have achieved it by the end of the two-year period?

The document states:

“Obtaining settled status will be subject to meeting certain requirements. The eligibility criteria will be set out in UK law”.


Could the Leader of the House give some further idea of what sort of requirements are envisaged? Will the UK law referred to be in primary or secondary legislation? Is this what is envisaged to be covered in the new immigration Bill and, if so, when do the Government plan to publish that Bill?

Finally, to take up another point mentioned by the noble Baroness, Lady Smith, today’s documents states that:

“Obtaining documentation showing their settled status will enable EU citizens resident here to carry on living here lawfully”.


But it then states about that documentation:

“The Home Office may also need to capture evidence of EU citizens’ biometric information during the application process”.


That raises concerns that what is being proposed is ID cards just for EU nationals with settled status. Can the Government guarantee that this new status will not require EU nationals who receive it to carry documentation signalling their status and this will not amount to an ID card? If there were to be some kind of ID card, could the Leader of the House set out how much the Government would expect such a policy might cost and how they might expect it to work—particularly given that it would result in only a small minority of those living in the UK being required to carry such cards?

This Statement and the policy paper begin to answer the many questions that EU citizens have about their future status in the UK, but it leaves many unanswered. The Government need to answer those questions quickly to bring about the certainty that they claim to seek.

[Baroness Evans of Bowes Park]

My Lords, I am grateful to the noble Baroness and the noble Lord for their comments today. As I said, this Council is the first to follow the formal start of negotiations for our departure from the EU, and it shows that we will continue to play a full part in Europe as reliable partners and as friends and neighbours.

The noble Lord and the noble Baroness asked about the Prime Minister’s involvement in the summit. As the Prime Minister made clear in the Statement, she led on the discussion on internal security and tackling online extremism, which built on discussions that she had had bilaterally with President Macron—and, of course, also complements work that has been done with the G7 and which will be pushed within the G20. We will obviously need to work with our EU partners on how we have a continuing voice in these discussions at an EU level, but it is clear that we have a voice at a global one. We are a member of a variety of institutions and organisations in which we will continue to play a key role. It is also clear that we have very strong expertise and knowledge in this area. Our EU partners value this and we want to continue to work together to make sure we can all benefit from joint communication and collaboration. As the negotiations continue it will become clear that that is as much in our interests as it is in those of our EU partners.

The noble Baroness asked about defence. The Prime Minister made it very clear that the UK supports the development of capabilities, such as the European action plan and European defence fund, which contribute to our collective resilience and our ability to combat shared threats. We must continue to create a genuine internal defence market, not a protectionist one, and we will continue to work with the EU to achieve that. I do not have the information to hand to answer the noble Baroness’s questions about the number of employees in agencies and relocation, but I will write to her with it. The Prime Minister welcomed the recent progress made across the EU on delivering the digital single market strategy and we want to continue that work. We have been clear in our support of the letter on the joint digital initiative and welcome the Commission’s plan to introduce a legislative proposal to prevent unjustified data localisation.

The noble Baroness asked about the Northern Irish and Irish border. She will know that we agreed, in the first negotiation last week, that there will be regular and technical talks. There was a very early emphasis on four key issues: the rights of citizens is one but that border is another. We are absolutely determined to try to move those discussions on as quickly as we can.

The noble Lord and the noble Baroness asked a number of questions about the paper on EU citizens. Once we exit, we will be asking EU citizens to have a new status and document. I am not saying it will be an ID card—we have not discussed in detail what it will be—but it is true that there will be new documentation. We will be asking EU citizens to apply to the Home Office for this documentation demonstrating their new settled status in due course, in line with what most nationals in the EU currently do. As I also said in the Statement, the reaction from EU leaders was broadly positive and this is a good basis for discussion. The fact that we have published such a detailed proposal shows the seriousness with which we are taking this issue. Noble Lords have discussed it at great length and we have had a lot of passionate debate about it. The fact that we have come out early and now have a detailed document as a starting point shows the seriousness with which we also take the issue.

The noble Lord, Lord Newby, asked about the specified cut-off date. This will be a matter for negotiation and, as I said previously, we made it clear that this will be an early priority. He also asked about the legal basis. We want to see the outcome of our negotiation with the EU on citizens’ rights included in the withdrawal treaty. This will be binding on the EU 27 under EU law and on the UK as a matter of international law. Rights will be enforceable in the UK legal system up to and including the Supreme Court. The new immigration Bill will be about setting out our future system and we will be bringing forward proposals before that, later in the year.