European Union (Withdrawal) Bill

Lord Wigley Excerpts

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

[Lord Bourne of Aberystwyth]

My Lords, I certainly can confirm that but I was going to confirm it, as it were, right at the end of the debate. Clearly, this is fundamental. We are very much wedded to it, as was indicated in December, when there was a meeting with the EU on this issue and as we have stated again and again. I appreciate the point the noble Lord makes. It is important and I can confirm that we will do that.

[Lord Wigley (PC)]

My Lords, I wish to speak to Amendments 92 and 93 standing in the name of the noble Lord, Lord Foulkes, and myself. I am sorry that he cannot be here to speak to these amendments, but I understand that it is in order for me to do so.

These amendments would restrict Ministers of the Crown from being able to amend or repeal the Wales Act 2017 and the corresponding Scotland Act using regulatory powers. The fact that these amendments are necessary underlines a perceived disregard the UK Government have for the sovereignty of the two devolved parliaments. If the Northern Ireland parliament were in existence, I am sure there would be feelings along similar lines.

The Bill gives sweeping powers to Ministers of the Crown, with which they can do what they like, including amending and/or repealing the devolution settlements. This was exemplified last Friday 9 March, when, despite no agreement being reached at the JMC (EN) meeting on the status of powers being repatriated from Brussels, the UK Government pushed ahead and published their framework analysis. This was essentially a list of devolved areas of policy that the UK Government will take over themselves—I will not list them or go into that, because they will mainly come under Clause 8, as the noble Lord, Lord Bourne, mentioned a moment ago.

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[Baroness McIntosh of Pickering (Con)]

My Lords, I support Amendment 130, to which I have added my name, and will satisfy the Committee’s curiosity as to why I have done so. I am a non-practising member of the Faculty of Advocates and have the lesser distinction than the noble and learned Lord of serving as a Bar apprentice with the firm of Simpson & Marwick as part of my training. I also made my maiden speech in the other place on the Scotland Bill as it was going through its various stages. I simply want to support everything that the noble and learned Lord, Lord Hope, has said in speaking to this amendment. This is of course a cause of great concern to the Scottish Parliament, which I understand debated this very issue with a number of practitioners, including a leading practitioner from the Law Society of Scotland, and a number of academics last Wednesday in its Finance and Constitution Committee.

I listened very carefully to what my noble friend the Minister said in seeking to satisfy the Committee this evening that we should desist from supporting this little group of amendments because the Government are coming forward with an amendment at Report. If that is the case, I urge my noble friend the Minister to share with the Committee this evening the full contents of that amendment. The noble and learned Lord, Lord Hope, has accurately identified the issues at stake, and anything that might jeopardise the fine balance achieved under the devolution agreement and the Scotland Act—I wish to speak only to Amendment 130 —would be regrettable.

[Lord Wigley]

My understanding is that the government amendment to Clause 11, which we will come to in due course and which was promised for Report stage, has in fact been tabled today and is public property. It is a nine-page amendment—I have seen a copy of it. Therefore, I think the Committee should have that information available to it.

[Baroness McIntosh of Pickering]

I am most grateful to the noble Lord. Perhaps it is my fault but I have not been able to access a copy of the amendment; as we conclude this debate, it would be very helpful to have the contents of it. For now, I support the amendment standing in the name of the noble and learned Lord, Lord Hope, and others. I hope that the Committee will persist with this little group of amendments.

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[Lord Bourne of Aberystwyth]

My Lords, I do not recognise the power-grab allegation as being anywhere near reality. We are making progress. Of course there are differences, but I think in fairness all parties concerned have indicated, as the noble Lord, Lord Griffiths, did, that progress is being made. These are complex issues and it is a great mistake to see this, in some Animal Farm way as all black and white. It is not like that. Progress is being made. There is still territory to cover and progress to be made, but we are making that progress.

[Lord Wigley]

Before the Minister moves on, we are aware of his good intentions in this, his experience and his wish to get a coming together of minds. However, if the Government’s intention is always to get agreement for the changes—and, from the tone of what he has said, that is their objective—why should they be building provisions into the clause now under discussion to have a veto for Westminster that overrules either Cardiff or Edinburgh?

[Lord Bourne of Aberystwyth]

My Lords, I am grateful to the noble Lord. It certainly is my view that we want to get agreement—I have no doubt about that—but I shy away from his idea that one party should have a veto on things where there is no substantive reason why it should do so. I shall come to this, but if something relates to a devolved area, of course we will need the relevant consent of the devolved Administration. However, we are not seeking to add powers in this legislation that do not already exist to give bodies vetoes over Westminster legislation.

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[Lord Forsyth of Drumlean]

If the noble Baroness would like me to repeat my speech when she is listening, I will happily do so. However, I do not think the House would like me to. Perhaps she will read what I have said. She says that this goes to the heart of democracy: well, these are matters for the United Kingdom Parliament. There is no veto for any of the devolved Administrations. We have debated this endlessly. This amendment would give a veto; it would mean that the tail was wagging the dog; it would mean that the Scottish Parliament could prevent what was in the interests of the rest of the United Kingdom. That is not democracy.

The noble Baroness needs to address the words on the Order Paper—the words of the amendment—and listen to the arguments, instead of pursuing her ideological determination to reverse the decision of the British people.

[Lord Wigley]

My Lords, I hope that the speech made by the noble Lord, Lord Forsyth, will be reported loudly and clearly in Scotland, because I have no doubt that only one set of winners will be coming from that. The whole of the previous debate and this debate have centred on the question of trust. I am not sure whether the comments we have just heard will help create that trust in future.

The noble Lord, Lord Forsyth, said that my friends in Scotland were ignoring the English single market while building up the European single market—but the European single market includes the UK single market. It is one single market—a bigger one. Those who are looking to that single market are looking outward, not inward and restricting their boundaries to around the coasts of these islands.

[Lord Forsyth of Drumlean]

I said no such thing. I said that the single market, which is the European market, is a quarter of the size of the single market that is the United Kingdom for Scotland.

[Lord Wigley]

It may well be, but the European single market includes England at this point in time. In other words, they are not losing anything.

The main point I want to come back to is that made by the noble Lord, Lord Thomas of Gresford, with regard to resources. If we are being asked to trust giving a veto to Westminster and to the UK Government —that is essentially is what is coming through in a number of these clauses, whether or not that veto will be used in any way—that a power to impose policies in areas that have been devolved. That is clearly going to rankle with people who have become used to using those powers.

We have had experience of this. The noble Lord mentioned regional policy. The noble Baroness, Lady Randerson, will remember the problems we had in the early days of the National Assembly for Wales. There were problems in getting Westminster and Whitehall to pass over money that was for Wales and not holding it in the Treasury in London. That was what was happening, and it was not until Mr Barnier intervened with the then Chancellor, Gordon Brown, that £442 million was passed over to Wales. It was being held back by Whitehall and the Treasury. That is the background to the lack of trust we have. If we are to build up a future of trust, which is what I want to see between the nations of these islands, it has to be recognised that in some areas the leadership is coming from the devolved regimes. In other areas such as international affairs and defence, it is fair enough that the responsibility should lie here, and there will be grey areas. However, we have to make sure that we have a mechanism whereby we respect each other to sort out the grey areas, but attention has not been paid to that side of the argument. We should concentrate on that, and the amendment moved by the noble and learned Lord, Lord Hope, is a step in that direction.

If the Minister will consider the request made by the noble and learned Lord, Lord Hope, and respond to his proposals in this context as a way of showing good will towards reaching some understanding in the other contexts we shall come to, perhaps we will then start to make progress. May I ask the Minister to consider inviting those interested in these matters to meet to try to agree on a proposal from here that would go at least some way towards answering the problems being felt in Cardiff and Edinburgh? This is not insoluble, but it needs good will. However, good will is not always in evidence here.

[Baroness Finlay of Llandaff]

My Lords, I am a signatory to two of the amendments in the name of my noble and learned friend Lord Hope of Craighead. I should declare first that I am a member of the Bevan commission, which has been quoted, and I should also say that funding for Wales has indeed been a concern over time.

To return to these amendments and the core issue of trust, a wise saying comes to mind: trust arrives on foot and leaves on horseback. It seems as if we have had a few galloping horses through the Chamber this evening, but we have to move forwards. In the new world we will face after Brexit, which will not be easy—no one is now pretending that it will be—we need to be a United Kingdom and we need to pull together. Given the Minister’s remarks in response to the previous group of amendments—he indicated that he sincerely wants to bring the parties together to restore trust and find a resolution that helps us to move forward—I hope he will be able to work with others to achieve that, and that he will give serious consideration to these amendments. They have not been tabled to divide; rather they seek to establish a degree of reconciliation, restore trust and find a working way forward.

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[Lord Tunnicliffe]

My Lords, it may be convenient for the Committee for me to set out the Opposition’s view—

[Lord Wigley]

My Lords—

[Lord Tunnicliffe]

The noble Lord may speak after me, and as many times as he likes, but—

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[Lord Wigley]

Not on this amendment, because these points have not been covered. This is Committee, and we have a right to put our points.

[Lord Tunnicliffe]

Those who are familiar with the rules will know that as many Lords as they like can speak after me. They cannot speak after the Minister.

I think it will be useful if I simply set out the position of the Opposition. The seriousness of the situation, as described by a number of speakers, is entirely accepted. Those of us who have slogged through the road haulage and trailers Bill know that the extant law that a no-deal would fall back on is totally unfit for purpose and would give us perhaps only 4% of the capacity we need. I think there is a consensus on that. The fear of customs friction, which, once again, we raised at Second Reading, is acknowledged. It was neatly summed up by the chief executive of the Road Haulage Association:

“Simply using current customs practices and applying them to UK/EU traffic risks delays of biblical proportions which would strangle growth and hurt the entire economy”.


Basically, these amendments say, “Sort this mess out before you start executing change through Clause 7”, and, “Don’t misuse the regulations to do it”. We broadly agree, and we hope everybody agrees. We hope everybody recognises that we need these problems solved in road haulage—I will not repeat myself later; it is the same in railways and in aviation—before we can contemplate leaving the Union. They are not related to soft or hard Brexit, although each means different problems; they are related to transport problems. No deal means no transport, and that has to be sorted out.

Are these amendments the best way of doing that? I am not sure. At the moment we have an open mind on that. Perhaps this is an opportunity for the Government to propose a series of meetings for interested Peers off the Floor of the House with senior Ministers—no doubt with the noble Baroness, and perhaps the Secretary of State should intervene because this is so important—so that we can get to the bottom of the progress that the Government are making and find out how they propose to tackle what is a real problem. We have a common interest in it being tackled, and the Government have a duty to put a lot of effort into convincing sceptical Peers. They should tell us what they plan to do, respond to ideas and come back with amendments to assure the House that we are not going to drift into a disaster of biblical proportions.

[Lord Wigley]

My Lords—

[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords—

[Lord Wigley]

My Lords, I am sorry but I intend to speak.

[Lord Callanan]

We have spent 45 minutes discussing the issues.

[Lord Wigley]

I have not intervened at any stage in this debate.

[Baroness Randerson]

I have spoken for a total of three minutes on this Bill. I think we have a right to be heard.

[Lord Wigley]

The point I wish to make, if I may, is that Amendment 104 is very significant for Wales because of the implications that it has for the ports of Holyhead, Fishguard and Pembroke Dock—an angle that has not yet been covered in this debate. These are vital trading links between Wales and the Republic of Ireland. Holyhead is the UK’s second-largest port. In excess of 400,000 trucks pass through it each year, and a hard maritime border between Wales and the Republic of Ireland will inevitably hit it hard.

I ask noble Lords to read the excellent article by Professor Richard Wyn Jones in the Irish Times on the specific issues facing Holyhead and his native Ynys Môn, or Anglesey. Almost 80% of the Irish-registered HGVs heading for the continent pass through these Welsh ports, the vast majority via Holyhead. There is simply no space in or around the port for the kind of infrastructure that will be required to process the number of lorries and trailers that currently pass through it. A hard border in Holyhead will yield only chaos, and the same problems apply to Pembroke Dock and Fishguard on a lesser level.

The inevitable consequence of physical constraints in and around the ports is that freight will need to find ways to bypass Holyhead and Wales, especially if there is a soft border between the British state and the European Union in Northern Ireland. Without trade arrangements that mirror the outcome of what we already have, Welsh ports will be in danger of becoming uncompetitive. In practice, the border for freight at the Welsh ports must be as frictionless as it will be between the north and south of Ireland. That is why I support the amendment.

[Baroness Randerson]

My Lords, these amendments are designed to concentrate the Government’s mind and to get some answers. I share the concerns of the noble Lord, Lord Wigley, about Holyhead. The situation is very similar to that at Dover. When the Government try to close down the debate, I remind them that the areas expressing extreme concern to us about the lack of preparedness are the ones that have loyally voted Conservative over a long period, and they will be particularly worried that their concerns are not being heard with due seriousness in this Chamber.

The sort of Brexit that we get will of course have a major impact on our ports. They might have to change the way that they process goods twice: once possibly for the transition period and once for the end game, whatever that is.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

Wednesday 7th March 2018 Lords Chamber

I would like specific reassurances from the Minister on these points. We cannot leave this to be worked out somehow or other in the future. We need to have arrangements in place in the Bill. I emphasise again that the principal amendment in this group has my full support.

[Lord Wigley (PC)]

My Lords, I will speak to Amendment 317 in this group. Before I do so, I warmly endorse the comments that have already been made on the importance of getting the environmental dimensions right as we leave the European Union, if we have to.

Amendment 317 proposes a new clause on common frameworks for environmental protection, touching on a number of matters that have already been discussed. I hope that the Minister, when responding to this group of amendments, will see Amendment 317 as a constructive proposal for a possible way forward as we have to change our relationships as we move out of Europe. This amendment goes to the very heart of why I am both a Welsh nationalist and a European federalist, and those two attachments are in no way incompatible. I believe that every community should make as many decisions as possible that affect them for themselves, and where they cannot, for practical reasons—where, by their nature, some decisions have to be taken on a broader basis—those communities should have an effective voice in that wider decision-taking process The environment is one such issue.

Environmental protection is a devolved matter. However, while the UK is a European Union member state, most environmental law in the four countries of the UK is guided by common frameworks set at EU level. This amendment would require the four Governments to work together on proposals to establish minimum common environmental objectives and standards. As such, I hope it will appeal to all parts of the House. UK-wide frameworks will be needed to establish areas of common policy across the UK, even in areas of devolved competence. Crucially, this amendment would insist that devolved legislatures are equal stakeholders in the forming of those common policy areas. I will cover the principle of UK-wide frameworks, and my major concerns about Clause 11, when we get to that point of the Bill. Today, I will focus on the substantive relevance of this issue to the environment.

First, I will say a word about why common frameworks are needed. No area of policy will be more affected by the outcome of the common frameworks debate than the environment. According to analysis by the Institute for Government, there are more than 140 distinct policy areas where EU law intersects with devolved powers. The greatest number of these relate to the environment, which is unsurprising given that the EU frameworks have been widely created for environmental policy purposes.

Approximately 80% of environmental laws in the UK, including in the devolved nations, have some basis in EU legislation. Transboundary co-operation and common standards are widely recognised as important for the effective protection of the environment and the prevention of unfair regulatory competition. There are persuasive reasons for seeking to maintain common standards across the four nations of these islands post Brexit. Such frameworks would provide a set of minimum common standards and should be jointly agreed between the UK and devolved Governments. They will be important in a range of areas, such as the conservation of wildlife on land and at sea, environmental assessment and the co-ordination of action to address air and water pollution.

I shall give some examples of common frameworks. EU legislation relating to the natural environment—including the birds and habitats directives—currently helps to underpin effective environmental action by providing minimum common standards for site and species protection across the four nations. This facilitates the creation of a more ecologically coherent network of protected sites than would otherwise be the case. Such an approach will still be needed for the UK outside the EU, helping to ensure that actions in one jurisdiction complement, and do not counteract, conservation outcomes across these islands.

Similarly, the common frameworks provided by EU legislation—relating to the assessment of the likely environmental impacts of plans, programmes and projects—mean that consistent mechanisms are in place for assessing transboundary effects as well as allowing for public participation and transparency in decision-making across the four nations. Co-operation and joint agreement on common frameworks that provide minimum standards and shared high-level objectives are therefore needed.

I now turn to the role of the Joint Ministerial Committee. Most environmental issues are transboundary in nature and represent a shared concern across the four nations. In a welcome sign of progress, the UK and devolved Governments reached an agreement in October 2017, via the Joint Ministerial Committee on EU Negotiations, to develop and agree common frameworks in some of these areas post Brexit—to ensure the effective management of common resources that cross boundaries between the four nations.

For the sake of our shared environment, failure to recognise the importance of agreeing a set of common frameworks in these areas would be of great concern. We urgently need the UK and devolved Governments to commit to working more openly and transparently together, to secure the best possible system of environmental governance across the four nations following the UK’s exit from the EU. This should be informed by a robust assessment of the environmental implications and a transparent process that allows for public consultation and input from stakeholders across the UK.

In conclusion, I ask the Minister to accept that, in the absence of a replacement set of jointly agreed frameworks, environmental co-operation across the four nations would be undermined. Secondly, I ask the Minister to confirm that the views of the JMC will be subject to public consultation and parliamentary scrutiny. Finally, will the Minister provide clarity as to what will be the process with respect to pursuing common frameworks once the JMC analysis is published?

[Lord Krebs (CB)]

My Lords, I rise to move Amendments 112 and 113, which are in my name and those of the noble Baronesses, Lady Jones of Whitchurch and Lady Byford, and my noble friend Lady Brown of Cambridge.

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[Baroness Bakewell of Hardington Mandeville]

I am sorry that the noble Countess is frustrated with me trying to link the environment to archaeology. However, Article 191 aims for a “high level” protection of the environment and is based on “preventive action” in which,

“environmental damage should as a priority be rectified at source and that the polluter should pay”.

The principles, including the polluter pays principle, the prevention principle and the precautionary principle, have all been the fundamental base of environmental—

[Lord Wigley]

I am sorry, my phone will not switch off.

[Baroness Goldie (Con)]

I am sure that the noble Baroness will realise that the interruption was not a personal allusion to her speech or its content.

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[Lord Callanan]

As the noble Lord is aware, I said that the common agricultural policy is based on land-based production subsidies, whereas we can now move to other, different policies instead. This is one of the benefits of Brexit; the common agricultural policy has been one of the worst things the European Union is responsible for.

[Lord Wigley]

On that very point, if there is going to be a new, overarching agricultural Bill, will the Minister confirm that this would be applicable only to England, since agriculture is totally devolved to the three other nations?

[Lord Callanan]

Yes, I believe Scotland, Wales and Northern Ireland will be able to pursue their own policies in this regard—which is another benefit of Brexit.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

Committee: 3rd sitting (Hansard - continued): House of Lords
Wednesday 28th February 2018 Lords Chamber

[Lord Judd (Lab)]

My Lords, I warmly thank my noble friend for having put this amendment before the Committee. I should explain that I live in Cumbria and I understand very directly some of the things that have been said in this debate. It always gives me great heart when I see the European sign on tangible projects in an otherwise not too prosperous county, as an indication of European solidarity and a determination that people should stand together in making sure that a decent life is available to everyone. I do not think that, historically, we can overestimate the significance, the sadness, of what we are losing in that concept of European solidarity.

The other point I will make is that there have been references to reassurances and so on. Forgive me, I do not mean to be critical of those who have used the word, but I do not think that is enough. Possibilities have been created through our membership of the European Union. I believe that we have to have very firm guarantees from the Government that nothing is going to be lost in the context of what may be about to happen and that they will ensure that any work already in train, and any expectations already generated, will be fulfilled.

There really is a growing sense of injustice and unfairness in many parts of the country. The south-west is one example, and certainly the north is another example, not least Cumbria. There is a deep frustration—and in some instances it is not an exaggeration to say “anger”—about the disparities between what is available in the south and the south-east and what is not. I agree most warmly with the point made earlier in the debate that there is a feeling that our Government is a Government of the south-east and not a Government of the totality of British life. In that context, for Wales, Northern Ireland, Scotland, and indeed for English regions, we need those guarantees from the Government tonight.

[Lord Wigley (PC)]

My Lords, I am delighted to support Amendment 23, moved by my noble friend Lord Foulkes, and I concur without reservation with everything he said. The amendment addresses many crucial matters for Wales, as well as for Scotland and indeed for many parts of England. Article 174 of the Treaty on the Functioning of the European Union aims to reduce disparities in terms of economic and social development between the various regions of Europe. The central plank of this is to reduce inequality. I fear that the same thing cannot be said of the policy of the present UK Government. The objective of their policy is in no way a concerted drive to attack the disparities that exist within these islands. The income per head of an area such as Kensington and Chelsea is 10 times that of the area of west Wales and the valleys, the Anglesey area or the Gwent area. We surely cannot accept a tenfold disparity in a civilised society.

Europe has been a bulwark for us over the past 15 years in Wales—the past 18 years, in fact—since we started getting the Objective 1 money in 2000. That money has come through as additional funding for Wales, after a bit of a fight, which I will talk about on another occasion, but we have not had the success that Liverpool and Merseyside, certainly, have had, and South Yorkshire has had to a lesser extent—and we still have a lot of work to do.

The reality is that, when we look at the matters of industrial infrastructure investment that are in Westminster’s hands, we see that Wales is the only country in western Europe that does not have a single mile of electrified railway line. What happened to the plans that were already drawn up to electrify to Swansea? They have been dropped—and the proposals to electrify from Crewe to Holyhead are somewhere in the clouds. Yet we in Wales are asked to pay our contribution towards HS2. The reality is that we get greater assistance with our economic needs from the European Union than from Westminster. That is one reason why it hurts so much that we are about to leave the European Union, unless something can be done about it. Another example of where the Westminster regime is not sensitive to the crying economic need of Wales is the Swansea Bay lagoon, which has been confirmed as being a viable project, with a former Conservative Member of Parliament driving it forward, yet the Government refuse to come off the fence on it.

Then there is the disparity in another important aspect of economic infrastructure: broadband connectivity. The UK Government have recently directed significant sums to improve broadband in three of the four countries of the UK. They found £20 million for ultrafast broadband in Northern Ireland and £10 million for full-fibre broadband in six trial areas of England and Scotland. We are missing out on important things such as this and we cannot rely on Westminster to look after our needs. The Government’s justification for their broadband investment was that it will trigger the most effective short-term economic growth. Therein lies the central weakness of the Westminster approach: its short-termism and its links to political returns, as we have seen in the context of Northern Ireland.

The EU has been a major source of assistance to Wales, not least in terms of our economic infrastructure. The ERDF and the European Social Fund have been mentioned. Areas of England such as Merseyside, South Yorkshire and Cornwall have certainly benefited greatly from the EU as well. We will miss out all round when we turn our backs on Europe.

In the context of the amendment, we have a right to know how the Government intend to sustain the EU objectives of Article 174 after Brexit—if indeed they do. We are told that there will be a shared prosperity fund, but we have no details of its size or remit, nor how it will work with devolved government. In particular, given our experience in Wales with the Barnett formula, which has been such a travesty—and has been recognised by this House as a travesty—we have enormous reservations about leaving it to the Treasury in Whitehall to be the adjudicator in the distribution of such resources. It is for these reasons that I support the amendment, and I am certain that we shall have to return to these critical issues later in the Bill’s passage.

[The Earl of Listowel (CB)]

My Lords, I declare my interest as a vice-chair of the Local Government Association. I support the amendment moved by the noble Lord, Lord Foulkes, because over the past two years I have been attending two inquiries led by the All-Party Parliamentary Group for Children: the first into children’s social care services and the second into different thresholds for access to those services.

It has become clear from the evidence I have heard that local authority funding has been cut by 30% to 40%. Local authorities are delivering their statutory services and safeguarding children as best they can, but all the peripheral services—the family support services and the charities—are really struggling to meet the need and therefore more and more children are being taken into care. As I said earlier, Lord Justice Munby, President of the Family Court, in his statement last year highlighted that more and more children were being taken into care and the courts were finding it difficult to process the numbers of children being taken into care.

What needs to happen is what has happened to adult social care: additional funding needs to be given to local authorities so that they can meet the needs of their children and family services and we can stop taking children away from families whom, if they had had additional support early on, they could have stayed with. It is relevant to this debate because we have heard in the inquiries that it is often the poorest local authorities, with the most deprived families, which have both the greatest demand on their services and the fewest resources to meet those needs. So in what the noble Lord, Lord Foulkes, proposes I see a way of reducing deprivation and improving the wealth of those communities so that there is more resource available to local authorities to meet local need, and reducing the need of families to turn to those kinds of services. I look forward to a response from the Minister to the principles that the noble Lord, Lord Wallace, has just set out.

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[Lord Adonis]

I am very grateful for that response; I think that might help us in our further discussions.

In response to the amendment of the noble Lord, Lord Wigley, I will make two points. First, in the debate about regional assistance, one of the arguments is that we are simply getting our money back. The crucial point about the European Regional Development Fund and the other cohesion funds of the European Union, however, is that they are long-term development funds. The reason that they are so valued in the regions is not just because of the investment, but because they enable long-term planning to take place in the regions, which does not happen in response to Treasury funds because our own funding for these projects is so short-term. One of the big struggles that we have had in government—and this spans all three parties that have been in government in the last 20 years —is that we have had a huge difficulty in fixing and delivering long-term investment priorities because of the short-term attitude of the Treasury, which is not prepared to make those commitments.

When I became Secretary of State for Transport in 2009, the forward investment strategy for the railways in the United Kingdom was for five years, until 2014; so—surprise, surprise—there were no plans for high- speed rail at all and no electrification programme. It is not just that it did not go to Swansea: it did not go anywhere. Wales is the only country in the entire continent of Europe besides Albania that does not have one mile of electrified railway. This is because of a consistent absence of long-term infrastructure planning over the last generation. Thanks to decisions that we took in 2009, electrification is at long last going to reach Wales, but the plans that were in place for it to go to Swansea have been cut back to Cardiff; it was supposed to go to Bristol but it is now going only to Bristol Parkway, not to Bristol Temple Meads.

I do not wish to bore the Committee with the details, but the fundamental underlying point here is the absence of long-term infrastructure planning. We look to the Government for a commitment not just to have significant funds for regional assistance—because clearly funds are going to be required unless we are going to see the divides between different parts of the country becoming even wider over the coming years—but we need a long-term approach. The current European Regional Development Fund has a six-year planning horizon and we need to see at least that length of planning in respect of new funds and policies that the Government put in place. Otherwise, we will see a short-term scramble for short-term projects that do not begin to be able to deliver huge benefits such as new railway lines—HS2 and HS3 that we need linking the northern cities—and significant investment in Wales. The noble Lord, Lord Wigley, referred to tidal lagoons and the investment that could be made there. That, again, is an investment that would deliver economic and energy benefits over the next 80 years, and it needs to be long-term.

My second point, which is linked to the points made by my noble friend Lord Foulkes, is about the European Investment Bank. One of the most worrying things in relation to the funding of infrastructure projects, particularly in less developed regions of the country, over the period since the Brexit decision has been the collapse in lending to the United Kingdom for projects supported by the European Investment Bank. An article in the Financial Times last month gave quite scary statistics: new contracts in the UK financed by the EIB are down from £5.5 billion in 2016 to just £1.9 billion last year in 2017. Of that £1.9 billion, only £377 million was spent in the nine months after Article 50 was triggered. The president of the European Investment Bank, Werner Hoyer, was very clear that a key factor in this was,

“extra legal work the bank now had to do to ensure its assets in Britain would be protected after the UK left the EU”,

and uncertainty on the part of investors. This is leading to a significant problem in investment in infrastructure projects, in particular. Speaking as a former chairman of the National Infrastructure Commission, I can tell the Government that they will not get a commitment to long-term infrastructure projects unless they can put together the funding packages that are required. They need to span the public and private sectors, and for many of these projects which span a 10, 15 or 20-year horizon, the public sector is looking for guarantees, and if those guarantees have to come exclusively from the Treasury in future, we will see significantly less infrastructure investment than we have in the past.

Although the European Union is not the be all and end all—

[Lord Wigley]

Before the noble Lord leaves the issue of the European Investment Bank, I raised a question in the debate on Monday evening about the ongoing eligibility of higher education institutions, such as Swansea University, which has had £60 million out of the EIB. Will the noble Lord confirm my understanding that the UK will have an ongoing entitlement to help from the EIB? As he says, it is a question of the level of help and the confidence that is there and not that we will not be eligible.

[Lord Adonis]

My Lords, I am afraid we again get into the Alice in Wonderland world here, as we were in the debates on Erasmus and Euratom. My understanding from discussions with the European Investment Bank when I was chair of the National Infrastructure Commission is that if the Government were to wish to stay a member of the European Investment Bank, that might be possible. There are lots of legal issues which would need to be addressed, but it might be possible. However, it is the Government’s policy, as a matter of principle, that we will withdraw from the European Investment Bank because it is seen as a European institution and apparently the instruction from the British people two years ago was that we must withdraw from it for exactly the same reason that we must withdraw from Euratom: it is seen as a European institution and we are supposed be withdrawing from all of them or else Brexit does not mean Brexit.

We are engaging in self-inflicted harm purely for an ideological purpose by choosing not to be part of an institution which has “Europe” in the title. What has concerned the Committee so much in our debates is that sector by sector, area by area, we are committing to policies that are going to make the country worse off bit by bit. The cumulative effect of all this is going to be immensely serious. Where it is possible to not engage in that self-inflicted harm, it seems to me to be just a matter of common sense not to do so. I would be very grateful if the Minister could tell the Committee the Government’s policy in respect of lending currently made by the European Investment Bank and whether it might still be open.

I am constantly encouraging, and we have the more emollient face of the Government responding to the debate in the noble Baroness. I always have very high hopes of her because she sounds so reasonable when she replies. It may just be that she is so practised at doing these things, but I very much hope that she might give us a commitment that the Government will consider remaining a part of the European Investment Bank and not putting this essential investment in the future infrastructure of the country at risk, as appears to be happening at the moment.

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[Baroness Goldie]

I heard what the noble Lord said and I am coming to that; I hope what I am about to say will reassure him. I am explaining what the new proposals and structures are in order to give some context to my response to what is a very important amendment. The amendment also refers to rural areas. The Committee will be aware that my noble friend Lord Gardiner is the Government’s rural ambassador. He is working to ensure that government policy is addressing the challenges faced by rural areas. The House will recall that the noble Lord, Lord Cameron of Dillington, carried out a review in 2015 on the effectiveness of the Government’s rural-proofing policy, to which the Government responded. They have taken action based on his recommendations. That now includes practical guidance published by Defra to ensure that government departments make rural issues a routine policy consideration.

Looking beyond England, the devolved Administrations obviously have responsibility for rural policy, and I know that Scottish and Welsh Ministers will be thinking about how to ensure that their own policies and initiatives reflect the needs of rural communities. The Government’s industrial strategy and other existing policy initiatives therefore already cover the areas covered by the EU cohesion policy, which the noble Lord’s amendment seeks to preserve.

[Lord Wigley]

One of the core principles of the EU cohesion funds is the element of additionality. In previous UK regional policies, before we went into the EU structural funds from 2000 on, there was not that element of additionality, and initially the UK Government refused to recognise the need for additionality for European funding. Can the Minister therefore give an undertaking that the funds that will replace the money now coming from Europe will be additional, over and above existing regional policy?

[Baroness Goldie]

What I can say to the noble Lord is that we are in new territory. We are leaving the EU and having to construct successor policies and funding streams to deal with what we were accustomed to as a member of the EU. I have tried to explain what the principal strategy underpinning that would be, but as the noble Lord is aware, there are other funding sources. There is the United Kingdom shared prosperity fund, which will be a very important source of the funding streams to which I think he alludes. Before I come on to that, I shall deal with matters raised by the noble Lord, Lord Judd, because they are important.

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[Baroness Goldie]

I think that, in the first instance, as we look at how we will fund different parts of the United Kingdom, the primary discussions will be with those parts of the United Kingdom—they would have to be. That is without prejudice to the Executive in Northern Ireland, who I hope will be established. We will want to pay proper respect to that Executive when they are constituted and consider what they want to do. I would be very surprised if there were not a desire to have constructive discussions with the Republic of Ireland in the interests of trying to determine how best to address these needs, if there is a relationship. The Republic of Ireland, at that point, will be an international country separate from the United Kingdom, as it will be in the EU and the United Kingdom will not. We have to respect these new relationships and new boundaries.

[Lord Wigley]

This will be the last time I trouble the noble Baroness. On the Interreg question, one area that has benefited greatly has been the western Wales coast, particularly the seaports with their connections with southern Ireland. Given the pressure that there will be on Holyhead and other ports arising from Irish trade coming through the UK, surely this is an area where a version of Interreg has a very significant role to play. Can the Minister keep that in mind as the thinking on these issues develops?

[Baroness Goldie]

I thank the noble Lord; I think he raised an important point. The Government, as my noble and learned friend Lord Keen said, are very keen to listen. One benefit of debates like this is that points arise which merit careful consideration, so I thank him for raising that point.

The amendment strayed on to a more technical area. It would create provision for a Minister of the Crown to make provisions for programmes to implement cohesion policy domestically. I argue, however, that these powers are unnecessary. For example, under Section 126 of the Housing Grants, Construction and Regeneration Act 1996, the Government already possess power to provide financial assistance for the areas currently supported by EU cohesion policy and European structural funds. It allows the Secretary of State to give financial assistance in activities that contribute to the regeneration or development of an area, which include contributing to or encouraging economic development, providing employment for local people and providing or improving training services for local people. These activities cover much of the support provided under current European structural funds.

I have tried to set out why I think the noble Lord’s amendment is not required. The Government already have an industrial strategy which covers many of the areas of the amendment. There are also existing powers in place that make the amendment unnecessary. I have endeavoured to outline our plans for new funding to replace cohesion policy programmes—I appreciate that it has not perhaps been with the detail that the noble Lord might be seeking, but I hope I can reassure him that there is a plan to provide successor mechanisms to the European funding sources. I hope I have tackled his concerns and I urge him to withdraw his amendment.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Monday 26th February 2018 Lords Chamber

[Lord Davies of Stamford (Lab)]

My Lords, I have put my name to Amendment 205, which has already been very ably explained by the noble Earl, Lord Clancarty. First, I want to say a word or two in support of the noble Baroness, Lady Finlay, who made a most impressive speech. I hope that, for once, the Government will listen to her; they certainly ought to because she has a very special position of respect in the medical world. The medical profession in this country has been, at least up to now, one of the leading professions in the world, and she has a great deal of experience behind her and behind the words she set forth just now.

On that matter, as the noble Baroness said, the decision to leave the EMA was completely gratuitous. There was no reason for it at all. It was going to be perfectly possible to carry on with full membership while we left the European Union. A lot of us did not want us to leave the European Union—your Lordships know that I am among them—but there is no point in throwing away the whole loaf if you can keep even 5% of the bread. In this case, there would have been no difficulty at all in our remaining part of the EMA. The Government have given no explanation for this extraordinary move, which is a threat, a potential threat at least, to the advance of medical science and a certain threat to the position of the British pharmaceutical industry and to the willingness of companies to set up pharmaceutical operations and research and development operations in this country in the future—indeed, to the willingness of British pharmaceutical majors to remain as committed to this country as they have been up to now. It has really quite devastating industrial as well as medical effects.

The only reason we have ever heard for doing this is that we could not stay in the EMA because it involves some contact with the CJEU. That is quite extraordinary when this is a matter involving the health of the nation and involving one of the major industries in this country, of which we are all very proud. We do not have all that much in the way of successful manufacturing these days, but we undoubtedly do extraordinarily well in the pharmaceutical area, or have done up to now, and this industry is now to be handicapped for no better reason than one of theological fanaticism. It is incomprehensible to most of the world, either inside or outside this country. I hope that the Government will weigh very carefully the words of the noble Baroness and the representations that I know they have received from many branches of the medical profession and of the pharmaceutical industry, and for once just take account, soberly, carefully, thoughtfully and calmly of the values involved that are being thrown away and threatened by this extraordinary decision. I give an undertaking that I shall not gloat in any way if the Government do a U-turn on this: I shall congratulate them, sincerely and openly and I hope that they can find the moral courage to do what is right in this case.

I turn to Amendment 205, which was very ably set out by the noble Earl, Lord Clancarty. I shall not repeat what he said, but I want to talk about one section of the population that will be particularly affected by the abolition of the health insurance card in the European Union, and that is older people. Perhaps I should declare an interest here because I am certainly an older person, but I may be lucky because I have not so far been refused health insurance by anybody or charged exorbitant sums and probably, if I did have to pay a premium on my insurance policy to travel aboard, I would be able to afford to do so. A lot of people in this country, probably the majority, would not.

We all know that healthcare costs can be enormous, particularly in areas such as North America. One American friend of mine, who can actually afford to pay, was recently given a bill for more than $35,000 after a two-day stay in the Houston Medical Center. It involved a number of diagnostic tests, admittedly, as well as the board and lodging in the centre, but it gives an impression of the kind of costs that one can incur. There are countries in the world where you can get first-class medical care much cheaper than you can in Europe, let alone America, such as India, but not many. Countries tend to have medical care which is not up to the standards of North America, Japan or the European Union, or the costs are quite exorbitant, or in many cases both. Switzerland is another example, like the United States, where it is both.

For people who are older or have some particular medical record which makes them a bad insurance risk, underwriters will want to charge a very strong premium for insuring them at all. It is already quite difficult for them to travel outside the European Union. Many of us know people, friends of ours, who for that reason will not now travel outside the European Union. They will not even go and visit their family in the United States or Canada. They hope their family will come and visit them here, of course, but they simply cannot take the risk of falling seriously ill outside the European Union.

If the Government have their way and we go down this road that they have set out for us, the effect will not be just that people cannot go outside the European Union; they will not be able to go to Calais, Amsterdam, Berlin, Dublin, Copenhagen or Stockholm. That is the most terrible restriction of the horizons of a very large number of people. People may not have much time to travel when they are younger. They have business and professional commitments and a lot of strains on their budget because they are bringing up children and so forth. A lot of people look forward to being able to travel when they have retired, and the Government are saying to them, “When we have got this Bill through, you guys will not be able to travel at all—ha ha! You will be stuck here in this country”, which of course will be wonderful because we will have had Brexit and paradise on earth will result. That is a terrible—indeed, devastating—piece of news for a very large number of deserving people in this country. Once again, I hope the Government will have second thoughts.

[Lord Wigley (PC)]

My Lords, I will speak to Amendment 353 in the name of the noble Lord, Lord Stephen. I thought I had appended my name to it but clearly it had not quite arrived. I also support the comments made on the other linked amendments. I particularly identify with the comments of the noble Baroness a moment ago about Great Ormond Street Hospital, whose brilliant services we as a family had to avail ourselves of some decades ago. I cannot speak too highly of it and I hope that the points that were so well made are noted.

This group of amendments touches on one of the most sensitive areas of public policy: health and social care. There is a widespread unease in Wales—as there is, no doubt, throughout the rest of the UK—about the potential impact of Brexit on these vital services. On one level, one might not expect changes in our trading relationships to impact this sector as severely as, say, manufacturing or agriculture, but in fact there are already discernible effects on that key component of healthcare: the availability of a skilled workforce with adequate resources. A totally unnecessary uncertainty has been created, both for the existing NHS workforce, many of whom have come to the UK from EU countries, and with regard to recruiting potential new staff from those countries.

First, I have heard from those involved in healthcare—in Wales and in England, as it happens—about skilled staff employed in the NHS now actively seeking similar posts in other EU countries, just in case they feel forced to leave at a later date, perhaps for professional or social reasons. They fear that others will do likewise and that the available jobs will then dry up and they will need to move quickly to look for them. Secondly, I heard from a very authoritative source that EU-based specialist staff are currently holding back from applying for jobs in the UK because of the uncertainty caused by Brexit. Incidentally, this is not impacting just hospital services but university medical research and manufacturing companies in the healthcare sector.

The potential reduction in the number of key workers available to the NHS needs to be very carefully monitored. If we are to go for a soft Brexit in which we will agree the free movement of those coming for specific jobs and guarantee no dilution of their employment rights, that is all well and good; we might not need the amendment. But at this stage we just do not know what sort of Brexit awaits us. If it is a hard Brexit, with no agreement, we most certainly do need the review mechanism contained in this group of amendments, and we need it for a purpose because in a no-deal scenario we may need to make alternative plans to import key workers from other parts of the world—if we can find them—and to do so quickly. For these reasons I support the amendment.

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[Lord Callanan]

I will need to write to the noble Baroness with the exact amount of billing, as I do not have those figures in front of me at the moment.

I turn to Amendment 353, tabled by the noble Lord, Lord Stephen. The Government already keep NHS performance and health outcomes constantly under review, including through the NHS outcomes framework, which measures a number of health indicators intended to form an overarching picture of the current state of health and care services in England. We are committed to positive and productive engagement with the devolved Administrations going forward as we seek a deal that works for the entire United Kingdom.

The Secretary of State for Health and Social Care also publishes an annual assessment on the performance of NHS England, including how it has met its mandate from the Government, as well as an annual report on the overall performance of the health service.

[Lord Wigley]

As the Minister has confirmed that there is in fact ongoing, detailed monitoring of these matters, can he confirm that we are losing National Health Service staff returning to the European Union and are having greater difficulty in recruiting from Europe to fill the vacant spaces?

[Lord Callanan]

I am not sure that is the case. Obviously there are people returning to the EU all the time, and different people coming to the UK to take up job offers. We can get into detailed figures, but I do not think there is any large-scale exodus of health service staff.

For the reasons I have set out, this amendment is both unnecessary and risks creating unwelcome new burdens at a time when that is least appropriate. I hope I have been able to provide noble Lords with sufficient reassurance.

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[Lord Wigley]

My Lords, I support Amendments 10 and 163 on the need to ensure that the immense benefits of the Erasmus+ programme continue to be available to students throughout these islands and that the Horizon programme will continue to be funded. I have a particular attachment to the Erasmus programme from the early days, now decades ago, when a very good friend of mine and, I believe, a friend of a number of colleagues in this Chamber tonight, Hywel Ceri Jones, in his work in the European commission helped to pioneer the Erasmus programme. In fact, our parliamentary secretary in another place, Heulwen Huws, became one of his first administrators. I very much want to see this programme survive for those and many better reasons. The one point I want to impress upon the Committee is that the Erasmus programme has a very large input from the UK: it is not some programme being imposed upon us and owned by other people, it is something that we have a shared ownership of and we want to make sure the shared benefit continues for our young people.

The higher education sector in Wales has been a major part of the growing Welsh economy: 50,000 jobs in Wales depend upon it. Much of the success can be attributed to European investment, both structural and research-specific. Bangor University—I declare my interest in that university—has benefited over the last decade from about £100 million of funding. Swansea University’s Bay Campus has benefited from a similar level of EU funding. Incidentally, Swansea has benefited from £60 million of European Investment Bank funding. It would be interesting, although it may be outside the ambit of this short debate, if the Minister addressed that: the question of continued eligibility for European Investment Bank funding for our universities is one that could well do with clarification.

If we are in danger, in the event of a hard Brexit, of losing EU funding for higher education purposes and projects, I impress on the Government, as have a number of colleagues, the need to set up some alternative source of funding to ensure that vital work undertaken in our universities goes forward. We need a UK convergence strategy that will reproduce the European principle of equalisation and provide equivalent funds on a needs basis. This will enable universities, in Wales and elsewhere, to compete on the higher education world stage and continue to educate and innovate, as it currently does thanks to EU funding. Will the Minister clarify what the Government’s objectives are for these purposes as they enter the detailed negotiations? Do they aspire to some ongoing eligibility for access to cross-border and transnational funding programmes? Seeking single market participation is certainly the aim in the Welsh White Paper, but if the Government have rejected single market participation, as seems to be the noise coming out, can they guarantee, with no ifs or buts, that all the present levels of EU funding will be replaced, as was promised at the time of the referendum in 2016? This is particularly important for research funding: the Horizon 2020 programme has been a vital source of funding for universities throughout the land. So far the Government have refused to provide any statutory guarantee that these funding levels will be maintained. Will the Minister now take the opportunity to do so?

[Baroness Brown of Cambridge (CB)]

My Lords, I support these two important amendments and I apologise to the Committee for having being unavailable to speak at Second Reading. I therefore take the opportunity to declare my interests as chair of the Henry Royce Institute, a member of the Committee on Climate Change and chairman of the Adaptation Sub-Committee of the Committee on Climate Change. As we have heard from many noble Lords, the Horizon 2020 and Erasmus+ programmes are critical to our world-class academic institutions, to research and to our students. I will not take up any time by repeating the arguments but I remind the Committee that historically UK students are some of the least internationally mobile in Europe, particularly young people from less advantaged groups. If we are to compete ever more widely on the international stage after leaving the EU, ensuring that UK students from all backgrounds have the kinds of experiences that are enabled by the Erasmus+ programme should surely be a national priority.

We have not heard much about what Horizon 2020 does outside our outstanding academic institutions. It is a key funding source for industrial collaboration, supporting important initiatives such as helping Rolls-Royce develop new generations of more efficient and environmentally friendly aero engines. It also plays a key role in supporting innovation and entrepreneurship schemes, such as the knowledge and innovation communities, with a great example at Imperial College: Climate-KIC, which has already seen a number of new entrepreneurs with low-carbon technologies start to develop businesses in the UK.

In my own area of interest, Horizon 2020 supports environmental research. The UK wins around £147 million per annum for environmental research. Sadly, that rather dwarfs the £5 million investment in the new northern forest. Other EU funds, such as Interreg and LIFE, are important not only for environmental research but to cross-border collaboration on the island of Ireland; for example, supporting shared environments through the cross-border Loughs Agency, as well as other types of cross-border community projects. This is hugely important work that the House of Lords EU Select Committee was able to see and hear about at first hand on our recent visit to both sides of the Irish border. It is a really important element of the peace settlement on the island of Ireland.

These funding mechanisms play a critical role in our economic growth, as we have heard; in cross-border relations and well-being in Ireland; and in helping the Government achieve their stated aim to leave nature in “a better state” for the next generation. For these reasons, the amendments have my very strong support.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

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

[Lord Elystan-Morgan (CB)]

My Lords, my understanding is that about a fortnight ago an undertaking was given in the House of Commons to the effect that this matter would be visited and that a suitable amendment would be made to enable consent Motions to be passed by both devolved Parliaments in this matter. It seems to me a matter of a strict undertaking. I do not know whether the Government are in a position to say how soon that undertaking will be brought into force.

[Lord Wigley (PC)]

My Lords, I am grateful to the noble Lord, Lord Foulkes, for moving Amendment 5. I had intended to add my name to it, but then I started to look at the Northern Ireland dimension and how that could be covered. I therefore want particularly to speak to my Amendment 356, which is linked with Amendment 5 and which tries to deal with the unfortunate situation in Northern Ireland. I shall be brief because noble Lords have probably heard enough of my voice today.

At a time when the devolved Governments feel that they are facing what they call, rightly or wrongly, a power grab, surely it is important that the UK Government should carry those Administrations with them in such a major project as this. I listened very carefully to what the noble Lord, Lord Forsyth, said. As always, he was totally consistent, but he must accept that there is a conflict between the perception of a legislative consent mechanism at Westminster—which tends to regard it as a convention, as I said—and the understanding that has developed among the devolved bodies, which see it more as the norm and a mechanism required as part of the legislative process. I understand the noble Lord when he says that there may be parts of the legislative process without it, because of their international connotations et cetera, but when there is an impact, as has been mentioned in certain cases, on the powers coming back from Brussels and going to wherever they go to—Edinburgh, Cardiff and Belfast—then there clearly needs to be a mechanism to sort that out. That is not just at this point in time; that mechanism needs to be ongoing for the future, because I entirely accept that there is a UK single market and that there must be some rules for it.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

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

Moved by

[Lord Wigley]

1: Clause 1, page 1, line 3, at beginning insert “Subject to subsections (2) and (3),”

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[Lord Wigley (PC)]

My Lords, as well as moving Amendment 1 in my name, I shall refer to the other amendments that have been coupled with it for this debate. I declare some relevant interests, in that I own six acres of land that are rented out for agricultural purposes, and I receive a pension from two international manufacturing companies for which I worked, Mars and Hoover, both of which have major trading activities both in the UK and in continental Europe.

I should also make it clear that, while at later stages I shall certainly address those issues of particular relevance to Wales and the devolved regimes, I shall for the most part address issues that are of common concern across the United Kingdom. That is where I am coming from on the amendments before us now.

In tabling these amendments, it is categorically not my intention either to delay or to derail this Bill. I accept—yes, reluctantly—that the UK will be leaving the European Union and that it would be totally inappropriate for this unelected House to overturn the decision taken by the referendum. Neither is it the role of this House to overrule decisions taken by elected MPs in the House of Commons. We have no mandate to do so. It is, however, both our right and our duty to clarify the Bill, make it more workable, iron out the inconsistencies and ensure that, in its impact on citizens and businesses in every part of the UK, it is both even-handed and transparent.

Having said this, I do not accept the proposition that, if we leave the EU, we must per se also leave both the single market and the customs union. That is just not true. While my side of the Brexit debate is to accept that the UK voted to leave the EU, that vote in no way explicitly or implicitly requires us to break our economic ties. Some people who supported Brexit said that they had voted in 1975 to join the Common Market and that, if it were still just the Common Market, they would still support it. Retaining our single market and customs union links goes at least a little way to meeting those aspirations.

Many of the problems associated with the Brexit process have emerged only gradually, as those affected by it come to realise the full implications. As the Bill worked its tortuous path through the Commons, only slowly did its full impact become appreciated. This was not helped by the unwillingness of the Government to indicate where exactly they are heading. Had MPs been fully aware of the Government’s objectives, they might well have come to different decisions on key parts of the Bill such as this.

It is our responsibility to pass amendments to this Bill that will give MPs an opportunity to address such matters in the light of developments in the negotiating process and give due regard to the Government’s objectives, which may even now be only partially understood. This is particularly relevant when one considers the finality of this Bill. Unlike other legislation, if MPs get it wrong, they cannot return next year with an amendment Bill. With Brexit, once the die is cast, it heralds a permanent, irreversible change. We have to help MPs to get it right by giving them the appropriate opportunities to think again.

Amendment 1 is a paving amendment for Amendments 6 and 7. I introduce it at the very beginning of this Bill for a deliberate reason: to flag up that the implementation of Clause 1—the repeal of the European Communities Act 1972—cannot take place in a vacuum. There are considerations and provisions that must be addressed before the 1972 Act can be rescinded. There are no doubt Members of this Chamber who take the absolutist view of these matters that, irrespective of the consequences and regardless of the impact that such a decision may have on individuals, families, regions, industries, businesses and interests, the referendum must be seen in black and white terms and that, consequently, Clause 1 must stand unamended even if the rest of the Bill were to be jettisoned in its entirety. That is not the view I take; nor do I believe it is the view of the vast majority in this Chamber or in the other place.

Amendment 6 goes to the heart of the misgivings felt by industry and commerce across these islands. The Government have made it clear both that they are hell-bent on leaving the single market, which is important to so many industries and businesses across the land, and that their intention is not to maintain membership of the customs union, which could maintain at least some of the trade arrangements that currently exist. Industry after industry and service sector after service sector have begged the Government to rethink their stance on these matters. They point out the devastating effects that trade barriers would have on their businesses.

The EEF told me yesterday of its concerns: 84% of its members export to the European Union and any tariff would have a serious effect on their competitiveness. UK manufacturers form critical parts of complex EU supply networks. Any sudden changes at borders could, it asserts, have a dramatic impact on operations, costs, profitability and even viability. It calls for any new arrangements to include: zero-tariff rates; agreed rules of origin; a common approach to warehousing systems; the facilitation of the movement of goods under customs transit; and seamless customs administration. Those are the types of issues which must be resolved before we press the button to eject ourselves from the present customs union, which in fact answers these concerns. Of course, if we remain in the customs union, even if we give up our EU membership, those problems will be overcome.

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[Lord True]

I was honouring an engagement. It was not a social engagement: I was teaching medieval Greek culture on a university course in Italy, which I hope disqualifies me from being either a Little Englander or stupid, as some Brexit people have been described. I am not making a Second Reading speech but I was going to say that I rather thought that we were hearing a Second Reading debate again. Like everybody else, I read the debate. Looking at the groupings list for today, every one of the lead amendments seeks either to reverse Brexit or to delay its implementation. They are not about implementation or about progressing the matter but about obfuscation and delaying matters. I believe that there is a very important question that we need to address on the customs union.

[Lord Wigley]

My Lords—

[Lord True]

If I may, I will continue. The noble Lord has asked me not to talk too much. Let us have a debate on the customs union—a specific debate, not on a wide-ranging group. Let us hear the arguments. Maybe we will hear what the Labour Party’s policy is. The noble Lord, Lord Bilimoria, says that it is one thing and other people say it is another. We will then have a short debate, or maybe a long debate, and we will take a decision on the matter. That is the way to proceed. However, in a debate that has already lasted an hour and three-quarters, we have heard about ID cards, chickens, Ireland, animals and all sorts of things, and we are not even going to have a vote on the matter. We have nine other groups to go through. We are repeating the Second Reading but it is not me who is doing that; it is many of your Lordships.

The noble Lord, Lord Wigley, who made an interesting and impressive speech raising important points, should decide on Report which of those elements he wishes to put to a vote and we will then decide. For now, we ought to get on. This Bill has gone through the elected Chamber and it comes to us from there. That elected Chamber is entirely satisfied with it.

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[Lord Cavendish of Furness]

The noble Lord did not see behind him, but there were some signs of affirmation there when I said that they were sympathetic. I think he needs rather more careful whipping on that Bench.

The timescales are important. This reason has not been mentioned. Article 50 determines the date—we will come to this later—by which those who are responsible for negotiation have to reach agreement or fail to reach an agreement. Therefore, it is completely absurd to try to add a flexible date.

The Bill is not the narrow economic interest it has been portrayed to be. Many of the minutiae covered by the amendments are important, but they are not what the Bill is about. The Bill takes us out of the European Union on 29 March next year, at the behest of the majority of people in this country. It is about what people thought about their identity, their community’s identity, their country’s identity and their country’s place in the world. Given the way that the Welsh voted, it seems to me that the noble Lord, Lord Wigley, does not take into account what his countrymen feel in this respect.

[Lord Wigley]

If the noble Lord had listened to the speech I made, he would know that I accept the fact that there has been a vote to leave the European Union, but there was no vote in Wales or elsewhere to leave the customs union and the single market.

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[Lord Forsyth of Drumlean (Con)]

My noble friend has been accused of not being very experienced. I point out to those Members opposite that we are in Committee but we have had three and a half hours of Second Reading speeches, not speeches on the amendments.

[Lord Wigley]

My Lords, since we have come to the end of this interesting debate, as the mover of the first amendment I thank everyone who has taken part in it. I have no doubt at all that the points that have been raised are relevant to the Bill, otherwise they would not have been accepted, and that the arguments in relation to those amendments are therefore equally pertinent and we are all entitled to have the Government’s response if they have one.

One thing that has come through loud and clear from the Minister’s statement is the fact that he regards this, yes, as a debate about the single market and the customs union rather than about the contents of Clause 1. Well, if it was mainly a debate about the customs union and the single market, as it was, the message that has come from this House is loud and clear: four out of five of those who have taken part in the debate want to see the countries of these islands remain part of the customs union and the single market. If the Government are not going to face up to that, we shall undoubtedly come back on Report with an amendment that can get support across this House, and the Government will then have to defend their case in another place. I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

European Union (Withdrawal) Bill

Lord Wigley Excerpts

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

[Lord Wigley (PC)]

My Lords, I am delighted to follow two noble Lords from Scotland—the noble Lords, Lord Forsyth and Lord Reid. I warm more to the comments of the noble Lord, Lord Reid, at the end of his speech, which point a way forward. We have also heard a number of valuable contributions from Wales in the debate. In this long debate the most poignant moment for me, as for the noble Baroness, Lady Smith, was the contribution of the noble Lord, Lord Butler of Brockwell. He said:

“Clause 1 of the Bill … strikes a dagger to my soul”.—[Official Report, 30/1/18; col. 1411.]


That touched a nerve for many of us and I often wonder, as did the noble Lord, Lord McNally, how I should look into the eyes of my grandchildren when they ask, “How could we have allowed the tragedy of Brexit to occur?”.

There is some merit in coming 186th on the list if one is a Plaid Cymru Peer. There is just the possibility of a few things not having been said, so perhaps I may put forward Plaid’s viewpoint on some of these matters. We regard Brexit as a political disaster for both Wales and the United Kingdom but as democrats we accept that the voters of Wales, for diverse reasons, chose to leave the EU. While there may be a mandate to leave the EU, there is no mandate whatever for any specific new relationship with Europe or the world. So while I accept that the Bill should have a Second Reading I reserve judgment on its Third Reading, depending on how it is amended between now and then.

I accept the need for continuity legislation to avoid uncertainty about the fundamental rights of citizens, employees and consumers; and what trade rules apply when Britain leaves the EU. As all existing EU regulations will automatically carry over on 30 March next year, the Bill in fact accommodates an ongoing relationship with the customs union as a possibility. The Prime Minister, in her Lancaster House and Florence speeches, spelled out four considerations to which several noble Lords have drawn attention. What was spelled out is, first, that nothing is agreed until everything is agreed; secondly, that the Government are hell-bent on quitting the EU on 29 March next year, deal or no deal; thirdly, that no deal is better than a bad deal, however defined; and the fourth consideration is the irrevocability of Article 50 and a precise exit time, regardless of negotiations and whether Parliament has had time to approve any last-minute deal. If there is no deal because of last- minute complications, chaos would reign. We must consider the Bill’s robustness for such circumstances.

Other legislation may deal with the transition period or what practical difficulties might arise, although there are also implications for this Bill. The real dangers arise from giving Ministers Henry VIII-type powers. If the Bill goes through in its present form, can we adjust our order-making procedures to allow both Chambers to amend statutory instruments, and have the devolved Administrations agreed how they would handle these matters?

In that context, as the noble Baroness, Lady Finlay of Llandaff, the noble and learned Lord, Lord Morris of Aberavon, and the noble Lord, Lord Thomas of Gresford, observed, Clause 11 is wholly unsatisfactory. Political parties in all three devolved territories have stated that it is not acceptable. The Government recognised this during Commons debates but failed to bring forward amendments on Report. Why was there the delay? Clearly, there must be mechanisms to avoid market distortion within the UK unitary market. Some have proposed a statutory UK council of Ministers. If that were to transpire it must be a council of equals, not a consultative fig-leaf. The lack of progress on this matter is causing immense frustration in Cardiff, as in Edinburgh. It is feared there that the UK Government are using Brexit to roll back areas of devolved responsibility. Two weeks ago, the National Assembly in Cardiff voted unanimously for Wales to have its own continuity Bill, so that all powers returning from Brussels which relate to devolved matters will automatically transfer to devolved competence. Every party, including the Conservatives and even UKIP, supported that resolution.

Another question is how the final deal will be ratified. Both Houses of Parliament and the devolved Assemblies should be required to ratify it. It is essential that the deal includes some new type of relationship that allows ongoing trade between the UK and the European mainland, particularly for manufacturers and agricultural products.

An EEA-type customs union relationship might be an acceptable compromise. It would probably resolve the difficulties in respect of Gibraltar as well as Ireland, to which the noble Lord, Lord Hain, spoke so forcefully yesterday. If, however, by the Government’s self-imposed deadline, negotiations fail to reach a deal and we look over that horrible cliff edge, the consequences will be devastating. In those circumstances, the people must surely be asked if that is really what they voted for in June 2016. The people have the right to change their mind. They should have the final word on any hard Brexit, by way of a confirmatory referendum. If the voters then rush over that cliff edge, so be it; but if, in that new dawn of stark reality, they decide, “No, that’s not what we want”, then their judgment should be respected and we should step back from this whole sorry saga.

I shall not vote against Second Reading, but I shall put down amendments to give MPs a chance to think again and, even more importantly, as the noble Lord, Lord Reid, said, to give a hook for the other Chamber to address these issues. I only hope that the other place will, by then, have found the courage to make a stand and be counted on such momentous decisions.

Brexit: Gibraltar

Lord Wigley Excerpts

Monday 29th January 2018 Lords Chamber

[Lord Callanan]

I say to the noble Lord that I think it is clear. The Prime Minister said in Parliament on 18 December that,

“we will be … negotiating to ensure that the relationships are there for Gibraltar as well. We are not going to exclude Gibraltar from our negotiations for either the implementation period or the future agreement”.—[Official Report, Commons, 18/12/17; col. 758.]

It could not be clearer.

[Lord Wigley (PC)]

Does the Minister not accept that the predicament of Gibraltar would be largely overcome if we remained in the single market and the customs union?

[Lord Callanan]

I will repeat what has been said in the discussions we have had many times on this: we share the position of the Labour Front Bench that we are leaving the single market and leaving the customs union.

Brexit: Deal or No Deal (European Union Committee Report)

Lord Wigley Excerpts

Tuesday 16th January 2018 Lords Chamber

[Lord Wigley (PC)]

My Lords, I welcome this most timely of debates, and I thank the committee and the noble Lord, Lord Jay, for presenting the report and the noble Lord, Lord Whitty, for introducing it. Deal or no deal is, for me, an absolutely critical question. I respect the referendum vote to give up our membership of the EU, although I do so with the utmost of bad grace. However, we cannot ignore that vote or rerun the same question, even if Mr Farage, for his own reasons, seems to be advocating that.

During the referendum, Mr Farage and his Brexiter colleagues repeatedly emphasised that, of course, we would get a deal, a very good deal, because, we were told, it was in the interests of all the 27 other member states that such a deal was achieved. So, fine—if we do, indeed, get a good deal. For me and for the vast majority of my former colleagues in manufacturing industry, and for the livestock farmers of Wales, this means a deal that enables them to trade with the single market without any physical barriers or tariffs whatever. For the tourism industry in Wales, it means free movement of people, both visitors and employees, and for the NHS it means having no disincentives to recruiting staff at all levels of work. That is the core of a good deal.

Having no deal fails to deliver those key requirements. Indeed, today, to my mind, with this report, the Brexit chickens have finally come home to roost. A no-deal scenario represents an utter disaster for the countries of Britain. The Government are criminally irresponsible to present no deal as a viable option, and to use it as a bargaining counter, as Brexit Ministers come close to admitting, risks having the Government’s bluff called, to the ultimate detriment of both sides. Millions of people who voted for Brexit on the basis sold to them by Brexiters that of course a deal would be done would most certainly think twice before endorsing a no-deal Brexit. That is why, to my mind, if the no-deal outcome is what finally transpires, Parliament should insist that it cannot go ahead without there being a confirmatory referendum. I hope that, even at this late stage, MPs will have the foresight to build this into the Brexit Bill. If they do not, we in this Chamber should most assuredly do so.

A very real danger, as this report highlights, is that a no-deal outcome happens almost by default. Both sides may call the bluff of their antagonists, and that could go right up to the wire. That is the stark reason why building into legislation a fixed and immutable deadline late at night on 29 March 2019 is sheer madness. The hands of the negotiators in Brussels on both sides and the hands of Parliament itself must not be tied by unnecessary macho posturing. The issues at stake are far too important for them to be put at risk in a game of Euro-bluff.

Let us remind ourselves what a no-deal really means if it comes about by default, with negotiations possibly going up to the wire on 29 March and collapsing without agreement. On 30 March next year, it would mean that the border between the Irish Republic and the six counties will be closed, with a requirement to control the movement of goods, people and money. It would mean chaos in the Irish dairy industry, as the report highlights, with the possibility of a 44% tariff on Irish cheddar. It would mean that, on that Saturday morning, all the lorries going through the ports would have to be checked, with all the extra staff in place to handle such an eventuality and with potential chaos in Holyhead, not to mention Dover, where the report says there could be tailbacks of 17 miles. It would mean exporters having to adjust their prices to reflect, as the report mentioned, an additional 4% tariff on manufactured goods, up to 10% on cars—and such tariffs would apply to 90% of the UK’s manufactured exports.

Over 70% of Britain’s food exports go to the EU. On 30 March, farmers could face an instant tariff of between 40% and 80% on beef and lamb in various carcass forms. Imported food prices would instantaneously rise by over 20% if, on that black Saturday morning, we had to fall back on WTO rules. If at that point in time, when nothing is agreed because everything is not agreed, on that morning the London Chamber of Commerce warns, on page 15 of the report,

“flights from the UK … will be grounded on exit day”.

As Johnson & Johnson warned the committee, on page 14:

“A no deal scenario could potentially disrupt the supply of medicines”.


On that Saturday, UK citizens in EU countries and EU citizens in Britain will be in limbo. No deal means no deal. For the service sector, there is no succour from falling back on WTO rules, because, as the report notes, they do not apply to the vital financial sector.

It would be criminally irresponsible for the Government to allow the slightest possibility of a no-deal Brexit emerging at the last minute. They have to do at least three things, to my mind, which emerged from the report. First, they have to step back from the crazy policy of “nothing is agreed until everything is agreed”, as demanded in paragraph 106 of the report. They will need a phased approach. Secondly, a withdrawal agreement on the future UK-EU relationship needs to be agreed by October this year, separately from the deal on future relations. That is in paragraph 122. Thirdly, the Government need to spell out urgently what they expect in terms of the proposed transitional agreement, clarifying the legal basis for every element in such a transition package, as asked for in paragraph 132. I would also highlight the comments in paragraph 134 that:

“The consequences of a ‘no deal’ outcome would be so damaging that a fall-back position is now needed”.


There I rest my case. A damaging no-deal outcome, to my mind, demands that there be a confirmatory referendum. That is the only way that so damaging an outcome can be legitimised or, better still, buried once and for all. Let this unelected House resolve to allow the electors to have a final say on that most damaging prospect, which confronts us in the context of the report, of a no-deal Brexit.

European Union

Lord Wigley Excerpts

Monday 6th November 2017 Lords Chamber

[Lord Callanan]

I think that what happens to the European Union after we leave is a matter for the remaining member states to determine.

[Lord Wigley (PC)]

My Lords, will the Minister confirm that, if it appears over the coming months that the Government will fail to get anything but the hardest of hard Brexits, and if in the meantime these ideas about the future of Europe develop, the Government still have the option to withdraw their Article 50 application?