Brexit: UK-EU Relationship

Baroness Anelay of St Johns Excerpts

Thursday 1st December 2016 Lords Chamber

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, the noble Lord, Lord Liddle, has today given the House the opportunity to set out its advice on a wide range of issues which should be addressed not only during the negotiations to leave the EU but also beyond them. I very much value the way in which he phrased his Motion for that purpose.

As the Prime Minister has made clear, following the vote on 23 June we will be leaving the European Union, but we will not be turning our backs on Europe. I agree with noble Lords that our relationship with our European friends and neighbours remains vital to the United Kingdom. It matters to our prosperity because it is where, as noble Lords have said, we do much of our trade, and because 1.2 million British nationals live and work there. It also matters to our security because cybercriminals, people traffickers, drugs smugglers and terrorists simply do not respect international borders, and because threats to the territorial integrity of European neighbours such as Ukraine also present threats to this country.

In addition to prosperity and security, once we leave the EU we will also continue to share wider interests with our European neighbours on issues such as tackling illegal migration and climate change, all mentioned by noble Lords today. Continued close co-operation and consensus on issues such as these will be in all our interests. As the Secretary of State for Exiting the European Union said when he visited Brussels just last week, we want to ensure that we have a,

“positive, strong, and productive relationship with our closest neighbours”,

and one that,

“works in our mutual interests”.

Looking forward, I congratulate the noble Lord, Lord Ricketts, on his maiden speech, in which he referred to the importance of bilateral relationships. I advise the noble Lord that we agree with him and that we intend to build up our strength, in diplomatic terms, in Europe. Seven UK ambassadorial posts in Europe have already been upgraded and up to 34 additional diplomats focused on political work and lobbying are to be posted across the FCO’s Europe network. The precise nature of our future relationship with the European Union clearly and simply depends on the outcome of our negotiations, which will not be simple, as noble Lords have said. Those negotiations will be with all 27 members of the European Union and until they are complete we simply will not be able to give the full picture.

Before I go on to our approach to those negotiations, I shall address the issue raised by noble Lords of the Article 50 judgment and the role of Parliament and the devolved Administrations before and during the negotiations. The window for negotiations on our exit arrangements will open once the Prime Minister triggers Article 50 of the EU treaty, which the Government intend to do, as announced, before the end of March next year. We believe that it is proper and lawful to use prerogative powers to trigger Article 50. As such, we disagree with the judgment of the High Court in England and Wales, and are appealing the decision. The Supreme Court hearing on the matter will begin on 5 December and is expected to last four days. A judgment will be reached in due course. I am being particularly careful because I cannot say more on this while the appeal on this decision is pending in the Supreme Court. I should make it clear that in the initial hearing in the court of first instance, the High Court, words used by me in this House were used in support of the Government’s case.

Turning to the role of Parliament, the Government recognise that Parliament has an important role to play in helping to shape the UK’s future relationship with the EU. It is important to stress that triggering Article 50 is the beginning of the process, not the end. As the Prime Minister has made clear, there will be many opportunities for Parliament to continue to engage with the Government once Article 50 has been invoked; for example, through debates—in reply to the noble Lord, Lord Campbell-Savours, the usual channels will no doubt consider that matter—through ministerial Statements, and through scrutiny by the new Select Committee on Exiting the European Union.

The Government will bring forward legislation in the next Session that, when enacted, will repeal the European Communities Act 1972 on the day that we leave the EU. The great repeal Bill will end the authority of EU law and return power to the UK. My noble friend Lady McIntosh made a very interesting and informed speech in which she referred to specific issues about the great repeal that will have to take place and about secondary legislation. I can tell my noble friend that those issues are indeed being considered by officials at DExEU at this stage. The Government will set out more details on the timing of this domestic legislation to Parliament in due course. When negotiations with our European neighbours have concluded, all relevant legal and constitutional obligations that apply will be observed.

Turning to the role of the devolved Administrations, we will ensure that we build the best future relationship with the EU. In doing so, we will work to ensure that the interests of all parts of our United Kingdom are protected and advanced. We will work closely with the devolved Administrations in Scotland, Northern Ireland and Wales throughout the negotiating process. The Scottish and Welsh Governments and the Northern Ireland Executive will be given every opportunity to have their say as we form our negotiating strategy, and we will take into account all suggestions they put forward. Furthermore, the new Joint Ministerial Committee on EU Negotiations, chaired by the Secretary of State for Exiting the EU, is up and running already, discussing each Government’s requirements for the future relationship with the EU, and seeking to agree a UK approach to the negotiations.

The noble Lord, Lord Jay, among others, referred in particular to Ireland. With regard to Northern Ireland I would say that the open border for people and business has served us well. It is a high priority for the Government that we do not see a return to the borders of the past. There is a very strong commitment for the Irish Government, as well as ourselves, to ensure that that does not happen.

As Minister for the Overseas Territories, it would be remiss of me if I did not refer specifically to them. Last month I was able to reassure the overseas territories at our annual joint ministerial council that we are fully committed to involving territory leaders as we prepare for negotiations to leave the EU, in accordance with their various constitutional relationships with the UK, to ensure that their priorities are taken into account. At that JMC, Ministers from DExEU and the leaders of the overseas territories agreed a structure for future engagement through the creation of a joint ministerial council on European negotiations. That council will meet in the first quarter of 2017.

Much has been said about the negotiations. Clearly, a balance needs to be struck. We want to be as open and transparent as we can with Parliament, to bring parliamentarians with us as we build a national consensus around our negotiating position. The Government want to achieve the best outcome for the British people. As some noble Lords have recognised, to achieve the best outcome in any negotiation it is wise not to reveal your hand too soon—but that has to be balanced with not doing it too late. I do appreciate noble Lords’ views. Noble Lords will be aware that we have committed that Parliament will have access to at least as much information as Members of the European Parliament during the process, and that we are considering the mechanisms for transmitting that in such a way as to ensure that there can indeed be timely debate and scrutiny on the negotiations, while ensuring that complete confidentiality can be maintained. Where we can offer clarity, we certainly will.

The noble Baroness, Lady Crawley, asked about the quality of negotiators. Both DExEU and the DIT are equipping themselves with the resources they need to get the best deal for the UK. A trade faculty is being established within the FCO’s Diplomatic Academy—I have seen it at work already—to ensure that FCO and other Whitehall staff have the trade skills they need. As announced in the Autumn Statement, the DIT will receive an additional £79.4 million over this parliamentary cycle. The funding will come from existing spending aggregates to build our capability and help support a smooth exit from the EU and negotiations for the best possible global trading arrangements for the UK.

Much mention was also made on all sides of the House of the very difficult issues of migration. Our ambition is to create an immigration system that allows us to control numbers and encourage the brightest and best to come to this country, as part of a stable and prosperous future with the EU and our European partners. The UK—I am pleased to say, living in a town with a very diverse society and culture—remains one of the most tolerant and welcoming places in the world. We will continue to welcome those with the skills, drive and expertise to make a positive contribution. After all, if we are to win in the global marketplace, we must win the global battle for talent.

Noble Lords returned to the position of UK citizens currently in Europe and that of EU citizens currently in the UK. As noble Lords have recognised, for the moment the UK remains a member of the EU, with all the rights and obligations that that entails. There have been no changes to the status or entitlements of EU nationals in the UK or UK nationals in the EU. There was an exchange on these matters yesterday in another place at Prime Minister’s Question Time, which I think is the most up-to-date indication of the firmness of the Prime Minister in making it clear that she wants to protect the status of EU nationals already living here and that the only circumstances in which that would not be possible is if UK citizens’ rights in European member states were not protected in return. She made it clear that she hopes that,

“this is an issue we can look at at an early stage in the negotiations, and of course there will be two years of negotiations. I think it is right that we want to give reassurance to British citizens living in the EU and to EU citizens living here in the UK”—[Official Report, Commons, 30/11/16; col. 1518.]

That will underpin our objectives. I cannot go further than that.

[Lord Howell of Guildford]

I know that my noble friend is pushed for time, but on that issue, would it not make more sense, rather than trying to finesse the residence of EU citizens here and vice versa, to move unilaterally and so create momentum for a happier result with less of a delay?

[Baroness Anelay of St Johns]

My Lords, I am afraid that it would not. What my right honourable friend the Prime Minister was trying to make clear in answer to my right honourable friend Mr Peter Lilley in another place yesterday was that the position taken by Mr Tusk and others in response to a letter from 80 Members of both Houses on this issue made extremely clear the intransigence that we face. Therefore, it is not a matter that is going to be resolved easily, certainly not by making a unilateral statement. Although I absolutely understand the real principles that underpin the statements made by those who would like to see that unilateral movement made, it would not serve either British or EU citizens well.

There was much focus on trade. I am trying to finish just before my allocated time runs out; otherwise, the noble Lord, Lord Liddle, will have no opportunity to say his final words. The Prime Minister has made it clear that she will seek a deal that will give British companies the maximum freedom to trade with and operate in the European market—and allow European businesses to do the same here. Leaving the EU, we will also have the opportunity to shape our own ambitious international trade and investment opportunities and drive even greater openness with international partners in Europe and beyond. As the Chancellor made clear in his Autumn Statement, the fundamentals of our economy are strong, but there are certainly challenges. We are going to tackle them head on to ensure that the economy is match-fit to overcome the uncertainties ahead.

One of the uncertainties was raised by the noble Lord, Lord Shipley, at the beginning of the debate, when he referred to the domestic upskilling of workers. We are investing in the skills of the workforce by increasing the quality and quantity of apprenticeships, particularly in England, to reach a commitment of 3 million new apprenticeships starting by 2020. An apprenticeships levy will be introduced from April 2017 to encourage employers to invest in the skills they need. The noble Lord, Lord Shipley, was absolutely right to raise that matter, on which we will keep a very firm eye.

As I mentioned earlier, we do not intend to turn our back on our friends in Europe; nor will we turn our back on the world. Our commitment to our extensive security co-operation with European and other international partners remains steadfast. We will continue to play a leading role in promoting international peace, security and prosperity. We will continue to promote and defend the international rules-based system as a permanent member of the UN Security Council, the second-largest contributor to NATO, and a leading member of the G7, the G20 and the Commonwealth. We are the only major country which will simultaneously meet the NATO target of spending 2% of our GDP on defence and the UN target of spending 0.7% of our GNI on development. We have made it clear that we aim to maintain that.

In conclusion, we want the UK to continue to be tolerant at home, respected abroad, engaged in the world and working with all our international partners to advance our prosperity and security—and theirs. Noble Lords have made that clear. It is about the security and prosperity of all of us. If some fails, it damages us all. The negotiations which will begin after Article 50 is triggered will lay the foundations for our new relationship with the rest of Europe—a relationship that is in all our interests, which works for this country and for the European Union. I have stressed that to colleagues across Europe whom I have been meeting over the past few months, and I will continue to do so. That is what the Government aim to deliver.