EU Withdrawal

Debate between Lord Puttnam and Lord Callanan

Wednesday 13th February 2019 Lords Chamber

[Lord Callanan]

My Lords, I am grateful to all noble Lords who have spoken today, and for the many insightful and considered contributions. Indeed, I am particularly grateful to those noble Lords who sought to rise to the challenge of making points that the House had not previously considered. Sadly, many failed in that task, probably including myself, but I particularly enjoyed the contribution of the noble and learned Lord, Lord Hope, and his holding pattern analogy, which was particularly novel and amusing, although I do not agree with it. I also enjoyed my noble friend Lady Meyer’s spirited speech, despite many interventions. She made some excellent new points about the realities of some of the failings of the EU, which, of course, we do not often get to hear in this House.

During the debate, many noble Lords, including the noble Lord, Lord Taverne, and the noble Baroness, Lady Hayter, drew attention to the Prime Minister’s letter to the leader of the Opposition. In particular, a number of noble Lords spoke about the Government’s position on the customs union. As my noble friend Lord Howell pointed out in his speech, the political declaration that we have debated at length in this House explicitly provides for the benefits of a customs union. However, it also recognises the development of the UK’s independent trade policy beyond our economic partnership with the EU. Let me be clear: we are not considering staying in the customs union. We want to play a full and active role on trade policy on the global stage, working closely with friends new and old. From trade remedies to trade promotion and bilateral to multilateral negotiations, the UK will be able to tailor its trade policy to the strengths and requirements of the UK economy and in support of our industrial strategy.

While I am on the subject of trade, I pay tribute to the excellent speech of the noble Baroness, Lady Bull, on the importance of trade in services. While I again did not agree with every point she made, I can tell her that the UK services sector is a global success story. Our internationally competitive sector plays host to world-leading firms, as well as thriving small and medium-sized businesses. The political declaration includes a commitment to conclude an ambitious arrangement for services and investment that goes well beyond WTO commitments, alongside new arrangements on financial services. But leaving the EU will give the UK regulatory flexibility where it matters most for its service-based economy and where the potential trading opportunities outside the EU are the largest. Globally, services trade is growing rapidly and UK services trade with non-EU countries grew by 73% between 2007 and 2017.

My noble friend Lord Cope asked me quite a technical question about whether the UK’s customs declaration process is on track. We will have a functioning customs system on exit. HMRC continues to progress dual running of the customs declaration system and CHIEF, the current customs declaration system. It can process sufficient numbers of customs declarations anticipated in a no-deal scenario. This capability will be deployed alongside the CDS, ensuring we will have a functioning customs system on exit.

The noble Lord, Lord Puttnam, asked whether I was aware of the number of Americans professing to have Irish roots. The answer is yes, I am, because many of them are indeed my relatives. I also have Irish roots. Indeed, I have discussed Brexit with many in the Irish American community. He might find that not all opinion is uniform on that matter.

[Lord Puttnam]

I do not think it is people claiming Irish roots; they are adhering to Irish roots. The Minister might be well advised to read today’s Washington Post, which is very informative on this subject. He will find it more than interesting.

[Lord Callanan]

Indeed I will. I have been preparing for today’s debate and sitting in the Chamber, but I will have a look when I get the opportunity. I can also assure the noble Lord, as he suggested I would, that we have no intention of inflicting any damage on the Irish economy.

Many noble Lords, such as my noble friend Lady Altmann and others, have again asked about Article 50 and suggested that we could simply extend or revoke it. I think she is profoundly wrong on this matter. The Government’s policy has not changed. We will not revoke our notice to withdraw from the European Union under Article 50. We stand by the commitment we made to the British people to uphold the result of the 2016 referendum. To revoke our Article 50 notice would be to dishonour that commitment and to reject an instruction clearly given to us by the British people. On this point I agree with my noble friend Lord Cavendish.

I also do not believe that there is anything like a majority in the House of Commons for such a course of action. Indeed, we might soon find out. I note that there is an amendment tabled by the SNP that, if selected, would put that notion to the test in the other place. Perhaps that would be a useful reality check for those who cling to the belief that they can wish away the referendum as if it had never happened.

I also remind noble Lords, including the noble and learned Lord, Lord Hope, and the noble Lords, Lord Kerr and Lord Hannay, those who would like to extend Article 50, that as they know very well, that is not a unilateral option. An extension would require the consent of all 27 member states, a point well made by the noble Baroness, Lady Deech. As the Prime Minister correctly highlighted in the other place last week, the EU is very unlikely simply to agree to extend Article 50 without a plan for how we are going to approve a deal. To this extent I agree with the noble and learned Lord, Lord Hope. The best way forward, as I have said many times, is to leave in an orderly way with a good deal.

My noble friend Lord Balfe asked me to speculate on potential ratification timetables in the European Parliament. I hope we will be able to secure a satisfactory deal in plenty of time to allow the EP and this Parliament to approve it. I also gently say that we are not proposing to leave the European family—we are proposing to leave the European Union, which is not the same thing.

Unsurprisingly, many noble Lords returned to their favourite subject of a second people’s vote. I include in that number the noble Lords, Lord Judd, Lord Wilson, Lord Davies, Lord Taverne, Lord Hannay and the noble Baroness, Lady Wheatcroft. I am sure it will come as no surprise to any of them to hear me say that the Government stand by their policy to respect the result of the 2016 referendum. This Government made a commitment to the British people that we would respect the result of that referendum; I agree with the points made on that commitment by my noble friends Lord Cormack and Lord Cope. I note that this was a promise made by the Opposition too, and while obviously I have many differences with Jeremy Corbyn, on this matter I pay tribute to him, because he at least, unlike many in his party, seems to want to stick by that pledge made in their last election manifesto.

The only guarantees that another referendum would bring are of more mistrust and uncertainty. I notice that the supporters of a second or indeed, according to the noble Lord, Lord Cope, a third people’s vote, have yet again failed to offer this as an option in the House of Commons votes tomorrow, because they know, as do the rest of us, that there is no majority in another place for a second or, indeed, third vote.

The noble Baroness, Lady Smith, the noble Lord, Lord Newby, the noble and learned Lord, Lord Hope, and in his inimitable style—although indirectly and through the noble Baroness, Lady Smith—the noble Lord, Lord Foulkes, all asked about the legislation to be delivered in advance of exit day. With regard to primary legislation, the Sanctions and Anti-Money Laundering Act 2018, the Nuclear Safeguards Act 2018, the Haulage Permits and Trailer Registration Act 2018 and the Taxation (Cross-border Trade) Act 2018 have all now received Royal Assent. Six other exit-related Bills are currently in Parliament. The Trade Bill, the Financial Services (Implementation of Legislation) Bill, the Agriculture Bill, the Fisheries Bill, the Healthcare (International Arrangements) Bill and the Immigration and Social Security Co-ordination (EU Withdrawal) Bill will be prioritised appropriately to ensure that the measures necessary for a functioning statute book on exit day are in place before the UK leaves the EU.

With regard to secondary legislation, the majority of statutory instruments are needed in either a deal or a no-deal scenario, and they will be deferred to the end of the implementation period if they are not needed on 29 March. This is part of our long-term planning—