Northern Ireland Protocol Bill

Viscount Hailsham Excerpts

Committee stage
Wednesday 2nd November 2022 Lords Chamber

[Lord Judge (CB)]

My Lords, I shall be very brief and will say nothing about the breadth of the power being sought by Clause 12. I will read Clause 12(3):

“A Minister of the Crown may, by regulations, make any provision which the Minister considers appropriate”.


We all know what that means: a Minister will be empowered to create any regulations as he or she thinks fit. That is not objective: as he or she, sitting down, thinks fit. It is purely subjective. If we allow this piece of legislation to go through, we are saying to the Minister, “At whatever time it may suit you, take a blank sheet of paper and either write with a pen or type on your laptop whatever you think you want”. That will then be put before the Commons and the Lords, and, as they have not rejected anything for an eternity in real terms, it will become law.

Is that really how we think that power should be given to Ministers anywhere within the UK? It surely is not. There are other ways of making regulations. Good heavens, no Minister needs a lesson from me in how to create regulations; we are bombarded with them all time. But I do ask the House: is this really how we expect to be governed? The Minister can do what the Minister likes. The clause uses a different and longer phrase—“considers appropriate”—but it really means no more than whatever he or she wishes. It is not good enough.

[Viscount Hailsham (Con)]

My Lords, I simply express my very strong support for what the noble and learned Lord has said: there is absolutely no limitation on the power conferred on the Minister to make

“any provision which the Minister considers appropriate”.

There is no test here of necessity or a requirement that the Minister should be satisfied that there are reasonable grounds for thinking that the regulation is necessary. In any event, the regulation is both unamendable—as all regulations are—and subject to the negative procedure, which means in effect that it will never be discussed. So it is thoroughly bad. I have no doubt that it is for that reason that the Joint Committee recommended that this particular power should be removed from the Bill, and if I am given the chance to vote for that view, I shall do so.

[Baroness McIntosh of Pickering (Con)]

My Lords, in the spirit of trying to help the Government, I will repeat what I said in relation to an earlier group of amendments: it would help the Committee, as well as the other place, if the Government could give us an indication of the type of regulations that they have in mind, so that we do not have this blanket provision before us today. There is still time to do that.

I will also ask a question of information. I understand that the “provision” to which the noble Lord, Lord Purvis, refers in removing it from this particular clause does not apply to agricultural subsidies. So, if it is the case that agricultural subsidies are still going to apply, who is in a position at the moment to decide on that, and within what timeframe would that be?

--- Later in debate ---

[Lord Ahmad of Wimbledon (Con)]

My Lords, I thank all noble Lords who have taken part in this debate and fully acknowledge that there are issues that noble Lords have raised before. In particular, I refer to the noble and learned Lord, Lord Judge, who once again, in his usual forensic and specific way, highlighted with great brevity the main issue of concern. I acknowledge that this has been raised by noble Lords during the passage of the Bill. However, I will revert to the specific amendments and seek to provide answers to some of the questions raised. I caveat that by saying that we will review some of the specific technical questions relating to previous debates—and, indeed, to previous Bills and treaties—and ensure that we provide a comprehensive response.

I thank the noble Lord, Lord Purvis, for acknowledging the letter. I hope that having three Ministers on the Front Bench is better than one. It underlines the importance that we attach to your Lordships’ House on the Bill. I also want to say from the outset, on the issue that the noble Lord, Lord Purvis, raised about the extent of the EU mandate, that we shall ask it to change from its earlier negotiating position.

My noble friends Lord Dodds, Lord Lilley and Lord Hannan alluded to the essence of why the Bill is necessary. Of course these things are negotiated. Every contract and treaty is made in good faith. The noble Baroness, Lady Chapman, was right to gaze in my direction. We are of course negotiating in good faith. If we were not, it would be a non-starter—it is as simple as that. I mentioned that I was in the last call that we had with the European Commission. We want to pursue a negotiated settlement because we believe it is in the interests of all parties and, in particular, it takes forward the concerns to which my noble friend Lord Dodds alluded. I agree with the noble Baroness, Lady Chapman, that it is important that we hear a broad debate about all the concerns that exist, particularly among all the communities in Northern Ireland.

Turning to Amendment 16 in the name of the noble Lord, Lord Purvis of Tweed, the power in Clause 12(3), also referred to by the noble and learned Lord, Lord Judge, is in line with those contained elsewhere in the Bill, but it ensures the proper implementation of the regime set out elsewhere in Clause 12, including taking account of any developments that could arise as a result of changes to the subsidy control landscape.

My noble friend Lady McIntosh raised the issue of agriculture. To respond to her, my understanding is that Clause 12 applies to agricultural subsidies. The purpose of Article 10(2) was to provide the flexibility needed to avoid Northern Ireland businesses losing out from leaving the common agricultural and fisheries policies. Clause 12 achieves flexibility by disapplying EU state aid law, rendering the carve-outs unnecessary. Agriculture and fisheries will be dealt with under the domestic regime. The new domestic regime provides a single coherent framework for all sectors. The inclusion of agriculture and fisheries will protect competition and investment in these areas across all parts of the UK, as it does for other sectors.

My noble friend Lord Dodds also talked about the detail of the regulations. Of course, I accept the importance of the need for the regulations. There will be opportunities to look at the regulations and for them to be scrutinised through normal parliamentary procedures. However, I note the points that have been made by my noble friends and other Peers in this respect. As I indicated earlier in respect of the information that we will seek to provide—

[Viscount Hailsham (Con)]

I intervene on a narrow point. Why is my noble friend against the test of necessity being included on the face of the Bill?

[Lord Ahmad of Wimbledon (Con)]

I believe that my noble friend is talking about the ministerial powers that exist here. We have had this debate before as well. We believe that a broader nature is necessary, and that is why “appropriate” is being used: to allow the maximum level of flexibility that the Government believe will be required. Of course, I accept there are differing opinions and views on this. Indeed, in conversations I have had, including with the noble Lord, Lord Pannick, to which I have alluded previously, there have been various Bills that have gone through your Lordships’ House where this discussion about “appropriate” and “necessary” has taken place, particularly with regard to the powers of Ministers and how those might be exercised. Of course, I note the point my noble friend is making.

The issue raised by the noble Lord, Lord Purvis, on TCA structures and state aid continues. TCA structures allow disputes to be raised, and the withdrawal agreement also provides structures for consultations as well. That very much remains the case. The noble Lord, Lord Purvis, also asked why the Government concluded that they had to remove state aid requirements from the protocol. The Government have been clear about the problems caused in practice by Article 10 of the protocol. This was first raised in our Command Paper in July 2021.

The noble Baroness, Lady Crawley, talked about a trigger point. Partly, this has been a culmination of the evidence and the practical experience, as was articulated by my noble friend Lord Dodds. The current system of operating two subsidy control systems within one country has created complexity and uncertainty, which is impacting policy across the UK. Irrespective of how noble Lords are approaching this Bill, either in support of or against what the Government are proposing, we all recognise that what needs to be resolved is the situation in Northern Ireland. Article 10 has also placed considerable administrative and legal burdens on businesses; for example, facing detailed questions about their operations from authorities to establish whether subsidies could be in scope of the protocol itself.

I have already referred to the powers. Noble Lords have been very articulate in making their concerns about the powers known but, again, I have underlined the importance of the necessity of these powers. To demonstrate in detail, in the previous day in Committee, we alluded to what this would require if everything was put into primary legislation.

Turning to Amendments 17 and 19, tabled by my noble friend Lord Leigh of Hurley, I am grateful for my noble friend’s contribution and for his reaching out to officials before this debate. My noble friend has powerfully illustrated the problems arising from Article 10 of the protocol and how they can arise in unexpected places across the United Kingdom and our economy. Article 10 can lead to uncertainty and delays in the delivery of subsidy schemes in Northern Ireland in comparison with Great Britain. They are exactly the sorts of problems that Clause 12 is seeking and intending to resolve, including to unleash further investment, to which my noble friend alluded, across the whole of the United Kingdom. The concurrent operation of two subsidy control regimes is a fundamental challenge for public authorities and beneficiaries across the UK. The solution put forward in the Bill truly addresses the challenges the Government believe exist, and will provide certainty across the UK.