European Union (Withdrawal) Bill

Debate between Robert Neill and Steve Baker

3rd reading: House of Commons & Report stage: Second Day: House of Commons
Wednesday 17th January 2018 Commons Chamber

[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)]

My hon. Friend gives us a salutary reminder that it is important that we make all the appropriate corrections before exit day, and the Government do want to make all of those corrections and to ensure that the law is accessible for all. I can confirm to him that Government Departments and the centre of Government are listening to industry, including the City, as part of our planning. We have put in place procedures and tools to ensure that we prioritise the most important corrections and so that nothing is missed out. On top of that, as the Bill provides for, we have put in place an urgent procedure in case of last-minute developments to which he refers.

[Robert Neill]

I am very grateful to the Minister for that helpful intervention. I am conscious, as I said, that the Solicitor General and other Ministers have done work on this, and that will shorten what I have to say. I hope that the Minister might meet me in due course to discuss the way in which the urgent procedure will operate so that we can get more detail. That is what I was seeking to achieve—to make sure that we have a means of dealing with something when a decision needs to be made pretty much in real time under these circumstances. That reassurance that the Government will find the means of doing that enables me to confirm that I shall not be pressing the matter. It does of course apply to situations in which, for whatever reason, something has been overlooked in the transition process, or in which something has cropped up that could not reasonably have been foreseen by means of the best endeavours. Against that background, I welcome the Minister’s clarification on that matter. I gather from his nod that he is happy to discuss the matter further with me, so I need not trouble the House any longer.

European Union (Withdrawal) Bill

Debate between Robert Neill and Steve Baker

Committee: 8th sitting: House of Commons
Wednesday 20th December 2017 Commons Chamber

[Mr Baker]

The hon. Lady reminds me of how much I miss the days of coalition on some occasions.

The clauses and schedules that we are debating in this final group contain a number of detailed, necessary and technical provisions. In many cases, they are standard provisions that one would expect to see in any Bill.

Clause 14 is a technical and standard provision that sets out important definitions of many key terms that appear throughout the Bill, such as “EU tertiary legislation” and “EU entity”, and clarifies how other references in the Bill are to be read. Clause 15 complements clause 14, setting out in one place where the key terms used throughout the Bill are defined and noting where amendments to the Interpretation Act 1978 are made under schedule 8. Together, clauses 14 and 15 will aid comprehension of the Bill.

Clause 18 provides that the Bill will apply to the whole UK. In addition, because the European Communities Act 1972 currently extends to the Crown dependencies and Gibraltar in a limited way, the repeal of that Act must similarly extend to those jurisdictions to the extent that it applies to them. The Bill also repeals three Acts that extend to Gibraltar, all of which relate to European parliamentary elections. The powers in clauses 7 and 17 can be used to make provision for Gibraltar as a consequence of these repeals. The approach in clause 18 has been agreed with the Governments of Guernsey, Jersey, the Isle of Man and Gibraltar in line with usual practice.

[Robert Neill (Bromley and Chislehurst) (Con)]

Will my hon. Friend give way?

[Mr Baker]

Well, I am going return to the subject of Gibraltar at considerable length later. [Interruption.] I am grateful to my hon. Friend for allowing me to continue.

As is typical with all Bills, clause 19 sets out which parts of the Act will commence immediately at Royal Assent, and provides a power for Ministers to commence other provisions at different times by regulations. Schedule 6 is linked to clause 3, which we debated on day two in Committee. That clause converts into domestic law direct EU legislation as it operates at the moment immediately before we leave the EU. There are, however, some EU instruments that have never applied in the UK—for example, instruments in respect of the euro and measures in the area of freedom, security and justice in which the UK chose not to participate. It would obviously be nonsense to convert these measures into domestic law after we leave, so these exempt EU instruments, to which clause 3 will not apply, are described in schedule 6.

Hon. Members will know that consequential provisions are a standard part of many Acts in order to deal with the effects of the Act across the statute book. Equally, transitional provisions are a standard way in which to smooth the application of a change in the UK statute book. Schedule 8 makes detailed and technical provisions of this nature, all of which are necessary and support the smooth operation of other crucial provisions set out elsewhere in the Bill. It clarifies what will happen to ambulatory references—I will return to this topic—to EU instruments after exit day, makes consequential and necessary amendments to other Acts, and makes transitional provision in relation to the establishment of retained EU law and the exceptions to it. Finally, schedule 9 sets out additional and necessary repeals as a consequence of our exit from the EU.

--- Later in debate ---

[Mr Baker]

Before I give way to my right hon. Friend, I want to respond on the new clause tabled by my hon. Friend the Member for Bromley and Chislehurst.

I would like to persuade my hon. Friend that his new clause 72 is not necessary. First, there is already sufficient statutory provision to ensure that the cost of mandatory veterinary checks on food and animal feed, on their importation, are fully recoverable. The arrangements for setting inspection fees for imported food and animal feed vary according to the type of inspection. All imports of products of animal origin must be inspected by a port health authority at a border inspection post. For high-risk products not of animal origin, these checks are carried out by a port health authority at a designated point of entry. Broadly speaking, these checks must be satisfactorily completed before a consignment is released for free circulation.

EC regulation No. 882/2004 on official controls, together with supporting domestic legislation—for England, it takes the form of the Official Feed and Food Controls (England) Regulations 2009—provides the legal basis for charges in respect of these inspections. The Bill will convert that EC regulation into UK legislation. The nature of the charges that the port health authority can make depends on a number of factors, including the nature of the food or animal feed being imported and its point of origin.

[Robert Neill]

I am grateful to the Minister for going into such detail on the basis for charging. May I mention that the other purpose behind new clause 72, which is a probing amendment, is to remind the Government of the importance of seeking in our negotiating objectives—no more and no less than that—a continued form of mutual recognition, if at all possible, for checks on food and feed?

--- Later in debate ---

[Robert Neill]

I am grateful for that assurance. There is just one other matter on which I hope my hon. Friend will be able to give me a like reassurance, on private contract matters.

[Mr Baker]

I will. I am about halfway through my remarks. I will come to that.

--- Later in debate ---

[Robert Neill]

I am grateful to the Minister for that assurance, particularly in the light of recent press reports of attempts by the Spanish Government to exclude Gibraltar from the transition and end-state process. It is important for the Government to make that clear commitment, subject, of course, to the existence of the proper regulatory equivalents and standards. If the Minister will give me an undertaking that that will happen with the full involvement of Gibraltar’s Government, I think that those of us who supported the amendment will be satisfied.

[Mr Baker]

I am grateful to my hon. Friend for his positive reaction to our amendment. The situation is as I have described it: our unshakeable objective is to secure the seamless continuation of existing market access to the UK, and to enhance it where possible.

--- Later in debate ---

[Mr Baker]

What I can say to the hon. Gentleman is that this Bill extends to Gibraltar only in the way I have set out: the Government’s policy is as I have indicated to him, and we remain steadfastly committed to the interests of Gibraltar.

I turn now to the REACH regulation, new clause 61. We will use the powers in this Bill to convert current EU chemicals law, including REACH, into domestic law. That will mean that the standards established by REACH will continue to apply in the UK. I believe that that renders new clause 61 unnecessary.

On custodial sentences and amendment 349, the scope to create criminal offences in the Bill is restricted so the powers cannot be used to create an offence punishable by a sentence of imprisonment for more than two years. It might, however, be necessary to create criminal offences in certain circumstances, for example offences related to functions that are to be transferred from EU bodies to UK bodies which would be lost without the ability to recreate offences relating to functions then held at a UK level. To lose the offence, and therefore the threat of a sanction, would remove what could be seen as important protections in our law, and for that reason we are not able to support the amendment.

I turn now to amendment 362 on the issue of ambulatory references. I hope the Committee will bear with me on the final, technical section of this speech. The amendment concerns paragraph 1 of schedule 8, which deals with the ambulatory references in our domestic law, as well as EU instruments and other documents in EU legislation that will be retained under clause 3. At present, the ambulatory cross-references update automatically when the EU instrument referred to is amended. After exit day, the Bill provides that such references will instead be read as references to the retained EU law version of the instrument, which, unless the contrary intention appears, will update when the retained instrument is modified by domestic law. This is necessary in order to prevent post-exit changes to EU law from flowing automatically into UK law. It would not be appropriate for the reference to continue to point to the EU version of the instrument after we have left the EU.

The approach set out in the Bill will be applied in relation to ambulatory references within any enactment, retained direct EU legislation, and any document relating to them. I understand that this last provision—the reference to documents and whether or not that includes contracts—has concerned my hon. Friend the Member for Bromley and Chislehurst. The Government are alive to concerns that we should not unduly disturb the operation of private contracts, or prevent parties to a contract from being able to give effect to their intentions. We are happy to explore this issue further with my hon. Friend and interested parties, to ensure that we achieve the appropriate balance between clarity and flexibility.

[Robert Neill]

I am grateful to my hon. Friend and my hon. and learned Friend the Solicitor General for their frank and helpful response in this matter. This issue was raised by the City of London Corporation and the International Regulatory Strategy Group. I thank the Minister for his assurance that he will continue to work with them, and look forward to that. I am satisfied, for these purposes, that the issue is being addressed.

[Mr Baker]

I am grateful to my hon. Friend. My hon. and learned Friend the Solicitor General and I look forward to working with him on this issue.

In conclusion, Sir David—

European Union (Withdrawal) Bill

Debate between Robert Neill and Steve Baker

Committee: 6th sitting: House of Commons
Tuesday 12th December 2017 Commons Chamber

[Mr Baker]

Well, I am extremely grateful to my right hon. and learned Friend, who I am very happy to see does remain my friend, as well as my constituency neighbour. I cannot tell him how happy I am to discover that that is the case.

Earlier, my right hon. and learned Friend asked me why Government could not accept additional protections requirements in amendment 13, given that that appears in other legislation. A similar test does appear in the Legislative and Regulatory Reform Act 2006, but the powers in that Act are rarely used, in part because of its complicated requirements. Moreover, the detail of that Act and its powers justify such a test as it is about deregulation. We consider that the existing restrictions in clause 9 are the right ones.

I move forward to amendments 131, 269 to 271, and 359 on restriction of the powers relating to EU citizens’ rights. Since those amendments were tabled, we have secured much-needed agreement on citizens’ rights through our negotiations. I hope Members will be glad that we have now made sufficient progress, subject to the European Council meeting, and that we will be able to move forwards.

The final agreement with the European Union on citizens’ rights is still subject to our negotiations with the EU. However, of course, we expect to give effect to those in the withdrawal agreement and implementation Bill. The House will therefore have both a meaningful vote on the agreement and on its debates on the primary legislation necessary to implement it. I therefore invite hon. Members to withdraw their amendments.

[Robert Neill (Bromley and Chislehurst) (Con)]

On amendment 359, we seek clarity on the current wording in relation to deficiency by means of a loss of reciprocity. We want to clarify that the Government do not intend to use it in a broad sense—in theory, it could be used in a very wide sense. In fact, it is intended to be narrow, so that major changes to policy, such as citizens’ rights to work or to come to this country, will be effected by primary regulation, not by regulation under clause 7.

[Mr Baker]

I understand my hon. Friend’s point. Just to reassure him: it is our firm intention to carry through the agreement, which he can read in the joint report of the negotiators, into legislation so that citizens can rely on it in the United Kingdom through that withdrawal agreement and implementation Bill, which I hope we can put before the House in due course.

Amendments 31, 32 and 57 seek to remove so-called Henry VIII powers. I can confirm that amendment 32 is not necessary because the power in clause 7 cannot be used to amend the Act itself. It would be outside the scope of the power—ultra vires. Neither can the power in clause 8 be used for this purpose. Let me be clear: only the power in clause 9 states that it can amend the Bill. None of the other powers in the Bill make that statement. As I said earlier in an intervention, in the event that the use of a clause 9 power is proposed to amend the Act, it would be subject to the affirmative procedure.

--- Later in debate ---

[Mr Baker]

I am extremely grateful to my hon. Friend.

Let me return to my notes in order that I might give the Committee an accurate presentation of these measures. Where this type of specialist legislative function exists at EU level, we will need to ensure that the responsibility is transferred to the appropriate UK body so that the UK has a fully functioning regulatory regime in time for day one of EU exit. This might be the case where, for example, it is more appropriate for the Health and Safety Executive in the UK to update lists of regulated chemicals than the Secretary of State, or where it would make sense for the Prudential Regulation Authority to take on responsibility for updating monthly the detailed methodology that insurance firms must use to prudently assess their liabilities. Both these legislative functions are currently carried out at EU level and will need to be taken on by the appropriate UK regulator after exit.

To reply to the point made by my right hon. and learned Friend the Member for Beaconsfield, any SIs made under clause 7 that transfer a legislative function or create or amend any power to legislate will be subject to the affirmative procedure. This is provided for in schedule 7. Therefore, Parliament will be able to debate any transfer of powers and consider the proposed scope of such powers and the scrutiny proposed for their future exercise, which will be set out in any instrument conveying that power. Recognising that some of the existing EU regulation that will be incorporated into UK law will be of a specialised and technical nature, clause 7 allows the power to fix deficiencies to be sub-delegated to the UK body that is best placed to perform the task. EU binding technical standards—the detailed technical rules developed by EU regulators for financial services—are a good example of where we might sub-delegate the clause 7 power. These standards, which run to almost 10,000 pages, do not make policy choices but fill out the detail of how firms need to comply with requirements set in higher legislation. The PRA and the FCA have played a leading role in the EU to develop these standards, and so they already have the necessary resource and expertise to review and correct these standards so that they operate effectively in the UK from day one of exit. I appreciate the concerns of my right hon. and learned Friend and the hon. Member for Nottingham East, but I hope I have demonstrated why we cannot accept these amendments.

Amendments 17, 360 and new clause 35 require additional information. As I have said, we have tabled amendment 391, which will require the explanatory memorandums alongside each statutory instrument to include a number of specific statements aimed at ensuring the transparency of the SIs that are to come and acting as an aid to the most effective scrutiny that this House can provide.

I would like to take a particularly special moment to reassure my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), in whose name amendment 360 is tabled, that we have laid in the Library draft SIs that will help everyone to understand the sorts of changes that we might need to make under clause 7. I would like to reassure him that the Treasury has been engaging with the financial services industry extensively since the EU referendum on the range of issues affecting the sector as we withdraw from the EU. That engagement continues and it includes regular official and ministerial discussion with industry and trade associations and bodies such as the International Regulatory and Strategy Group. That includes discussions on our approach to the domestication of EU financial services regulation through this Bill. That will continue and grow throughout 2018. The Treasury is also working closely with the Bank of England and the FCA to ensure the UK’s smooth and orderly withdrawal from the European Union.

By supporting a close working partnership between industry, regulators and Government, the Government will ensure that their approach to domesticating EU financial services regulation is well understood and based on input from stakeholders. Consistent with the objectives of this Bill, the approach in financial services is to provide certainty and continuity for firms after exit with the UK maintaining high regulatory standards. Financial services is one of the areas where a bold and ambitious free trade agreement could be sought. We are ambitious for that deal and we would do nothing in clause 7 to undermine it.

[Robert Neill]

I am grateful to the Minister for devoting that portion of his speech to the detail on financial services. That is important for the City, as he knows, and the proposal to publish draft statutory instruments is a well-tested and welcome route.

[Mr Baker]

I thank my hon. Friend.

Oral Answers to Questions

Debate between Robert Neill and Steve Baker

Thursday 2nd November 2017 Commons Chamber

[Mr Baker]

That work is currently ongoing. Departments have set out that, together, they will expect to introduce between 800 and 1,000 statutory instruments in order to carry forward the degree of certainty and continuity that we expect to deliver through the repeal Bill. In due course we will of course put all those instruments before the House.

[Robert Neill (Bromley and Chislehurst) (Con)]

The president of the European Free Trade Association court will visit London later this month. Will my right hon. Friend the Secretary of State take that opportunity to explore with him the potential that that court might offer a means of resolving potential legal disputes and other matters of resolution in a transitional future arrangement?