(2 years ago)
Lords ChamberMy Lords, I will allow a couple of seconds for people who have obviously got it off their chest during the first group to leave, in the hope that we do not go through the whole thing again.
Clause 19 is very short, at only a couple of paragraphs, but it is quite interesting, as it pleasingly addresses the situation we may find ourselves in where the Government have been successful in reaching an agreement with the European Union. Many of us have said, time and again, throughout this Committee, that we hope to see that. We have been challenging Ministers, as we have seen in the previous group, to show visible political leadership. The visibility has been lacking. I take on board what the Minister said about his right honourable friend the Foreign Secretary playing an active role, but visibility and political momentum have been lacking. I like to think that, had one of my right honourable friends been leading these events, we would have seen a far more outward-facing presence, if I can put it that way, through this process—but never mind.
Clause 19 looks at the eventuality of there being an agreement. The amendment I have tabled is one that will be familiar by now to noble Lords who have been taking part in this process from the first day of our considerations. The first line of the clause, as it stands, says that:
“A Minister of the Crown may, by regulations, make such provision as the Minister considers appropriate”.
I have asked that “appropriate” be changed to “necessary”, and I will explain why, in this particular instance, that is sensible.
This clause gives Ministers the power to implement an agreement that they hope to reach with the EU. Obviously—and we accept this—Ministers will need some flexibility in that event, and things may need to be done as a consequence of having an agreement. But I would have thought that an agreement, by its nature, would be clear and specific, and that things would be agreed that are not currently in place that would need to happen. In that instance, surely the things that need to be done by Ministers will, by virtue of the fact that they have just been agreed to with our negotiating partners, meet the test and be necessary.
It troubles me that the Government feel they should have “appropriate” there instead. That seems to give them much greater scope than is ever going to be needed in the event that this clause is used—and we hope that it will be. I would like to know from the Minister what the Government’s thinking is there, beyond thinking that “necessary” is too tight and just wanting to allow themselves a bit more room—of course they do; who would not? But this clause deals with the fact that there may be an agreement, and I do not think it is justified for the power to be as widely drawn as it is.
While I am on my feet, I note that I support the stand part notice from the noble Lord, Lord Purvis, in this case as well. The DPRRC believes that the powers in this clause are just too widely drawn, though there is obviously merit in discussing what powers are needed in the event of an agreement and what the role of Parliament should be in that situation. We think that a deal can be struck—we have said that many times—and also believe that Parliament should have the opportunity to debate any agreement, as other Parliaments will. I just note that the European Union (Future Relationship) Act 2020 was passed in a day and the TCA was ratified without direct parliamentary process. We accept that Ministers need the ability to act in the event of an agreement and we appreciate the Government demonstrating their anticipation of such an agreement in this clause, which is notable, but surely a Bill to enact an agreement would be better. That is what we have been asking for.
This is a discussion we have had with the Government on many occasions and on other agreements, when we have talked about the unsatisfactory process we still have in this country for parliamentary involvement in agreements. We do not think we have got it right yet; that is understandable, and it is perhaps going to take some time to get to that point. We have not had to engage in this for many years, but I do not think that many people in Parliament are satisfied with the way this works at the moment, and it would be helpful if the Minister could acknowledge that.
Without being too cheeky about it, we want to help the Government, given just how unsuccessful they have been so far in settling these issues. We do not see why they would be so resistant to involvement from people who are being very positive and cheering them on in their endeavours. We really do want to see a resolution to this. With that, I beg to move the amendment in my name and express my support for the stand part notice tabled by the noble Lord, Lord Purvis.
We support the amendment in the name of the noble Baroness. In supporting it, I want to make two points. First, this clause effectively turns the Constitutional Reform and Governance Act principles on their head. We have well-established mechanisms, which are set down in statute, on how we approve new international agreements. If this is a mechanism to replace the Northern Ireland protocol, an internationally made agreement, with a new agreement, then why is the CRaG process, which allows parliamentary scrutiny, debate and, unlike this, an ability to have enhanced approvals or indeed vetoing by Parliament, not going to be the route for it? I do not understand why.
Secondly, it also sets on its head every commitment that has been provided for every trade agreement: namely, that if a trade agreement requires any primary legislation to bring it into effect in domestic law, primary legislation is brought forward—this is not done by regulation. But, again, this is being set on its head. The Trade (Australia and New Zealand) Bill is coming up, which is primary legislation—not regulation —implemented with agreement. The two Bills contradict each other really quite glaringly.
I think that this is significant because of an interaction I had with the noble Lord, Lord Dodds, on one of the previous days in Committee. I asked him whether he had given consideration—if there is, as a result of these talks, an agreement with the EU—as to how that should be put in force. The Government are saying “by regulations”, which are unamendable and could even be under a negative process; they could use Clause 19 to do this. If the noble Lord’s concern—as well as that of the noble Lord, Lord Empey—was about the need for consent, this is not the means by which that would be secured. Yet this is the means by which the Government could enforce it. There is a very jarring comparison between what consent of any new agreement would be and how the Government are seeking powers under Clause 19 to enable them to put this into force. Clause 19 should not be the mechanism by which we have sustainable support for any agreement. An order-making power for a Minister is simply not the route—and that is in addition to the fact that they are turning on their heads long-standing practices by which we put international agreements into domestic legislation. For this reason, I do not think that Clause 19 should stand part of the Bill.
My understanding is that we would certainly abide by our previous commitments in that respect. In the interests of clarity, I will confirm that in writing to the noble Lord.
I do not think we are very happy about this. The Minister says that he wants to address stability in Northern Ireland, yet this whole process goes over the heads of people in Northern Ireland. We heard from the noble Lord, Lord Empey, and others just how unsuccessful they expect that to be. There are so many issues here, I just do not understand why Clause 19 is required when there are processes available to the Government to do this. We shall come back to this, but the only thing about saying that we shall come back to it on Report is that we do not know whether we will actually get to Report, given the amendments that we discussed before we started our formal consideration of the Bill. We still have not heard anything from the Government on that. Obviously, we shall leave it for today but the discussion we have had leaves a few more questions than answers. I beg leave to withdraw the amendment.
My Lords, I thank the noble Baroness, Lady Doocey, for her amendment because it goes to the heart of the protocol and the protocol Bill issues in relation to the need for an SPS veterinary agreement. The dairy and farming industries on the island of Ireland require an SPS agreement. I have written to the noble Lord, Lord Caine, today, following last week’s debate on this issue following further discussions with elements of the dairy industry. The bottom line is that unless there is an SPS agreement, that could very much interfere with our dairy industry and totally undermine it.
I shall give a short explanation from the letter. Those in the dairy industry acknowledge the issues that the Northern Ireland retail sector is dealing with regarding the protocol and support for a dual regulatory regime, but such a regime would not work for the dairy industry because we are looking at the very survival of Northern Ireland dairy farmers. Approximately 30% of all Northern Ireland milk is processed in the Republic of Ireland because there is not the capacity to do so in Northern Ireland. It may be worth visiting some of the processing factories in Northern Ireland that are part of a greater co-operative group to see what they do and what they are trying to tell us.
If you create a hard border for milk, which the dual regulatory scheme outlined in the Bill will, there will be enormous environmental issues. Northern Ireland does not have the capacity to dump 30% of its milk, and milk has special regulations for its disposal. You could then move to the culling of perfectly healthy animals which, in a cost of living crisis, is inconceivable. Finally, this would lead to devastating consequences for the economy of Northern Ireland, as the agri-food industry is its bedrock.
So I say to the Minister that those in the dairy industry have looked at the impact of a 30% reduction in sales to an average Northern Ireland farmer. When you consider their average interest on loans and their loan repayments, this would result in an annual negative cash flow. In other words, their costs would be greater than their income.
In summation, it is vitally important that the negotiations achieve an SPS veterinary agreement. From what I have read in the non-papers from the EU of October last year, it is very prepared to enter into such an agreement as part of the negotiations. However, the dual regulatory regime will not work for the agri-food sector. Maybe a bespoke arrangement is required for the retail sector where some of the problems lie.
My Lords, I am very grateful to the noble Baroness, Lady Doocey, for her amendment because it roots our discussions in the real world of farmers and manufacturers and focuses our minds on jobs and prosperity. The noble Baroness, Lady Ritchie, as usual, got it completely right and explained the impact on the dairy industry very powerfully. I will not repeat some of what she has already said, although I was intending to.
We ought to be working towards an SPS agreement. We on these Benches have thought that we should be working towards that sort of agreement for the whole of the UK and we have held that position for over a year because of the very clear benefits it would bring to food and drink manufacturers. I think the food and drink industry is still our biggest manufacturing sector in England, so there would certainly be significant benefits to the whole of the UK of this approach.
One benefit would surely be to assist—not to resolve completely—in overcoming some of the issues experienced by producers, hauliers and those wishing to trade east-west. We are reminded quite rightly by the noble Lord, Lord Bew, that we need to be concerned about this. It would be hugely beneficial to our industries in Northern Ireland and beyond. We understand that not every problem will be solved this way and we know that some SPS checks were there prior to the protocol, for other reasons. That seemed to work fairly well for quite a long time, so that may still be necessary. It will be interesting to see what the Minister thinks about that.
At this stage, we think we need this to help with the costs and administrative burdens faced by producers, distributors and retailers. A couple of examples have been referred to. I will briefly refer to the Swiss deal. They have an agreement where regulations are aligned, eliminating virtually all documentary, identity and physical checks. New Zealand, as we have heard, has an equivalence model that has made processes simpler and reduced checks. We probably would not want to replicate either of those models directly. Obviously there are differences, such as the volumes coming from New Zealand and the fact that many of the loads going east-west in our situation are mixed, that make neither model directly replicable. We think we probably need a bespoke agreement and the door to that seems to be open with the EU, so it is curious that the UK Government seem quite so reluctant to explore that option.
My Lords, I thank all noble Lords who have taken part in this debate. In particular I thank the noble Baroness, Lady Doocey, for tabling her amendment. I was saying to my noble friend Lord Caine that I think we are getting into some of the reasons. Irrespective of people’s views on the Bill itself, the fact is that businesses are facing problems and challenges that need resolution. I will come on to the specific point that the noble Baroness tabled so ably.
Amendment 43B, in the name of the noble Baroness, Lady Doocey, asks the Government to update Parliament on the progress of negotiations on the veterinary agreements between the UK and the EU. Let me say right from the outset that we have always been very serious about our negotiations on the protocol, and we remain so. Our preference remains to resolve the issues with the protocol through negotiations, and the Bill provides a power to implement any agreement which follows those negotiations—indeed, we had quite an extensive discussion on that particular point. I assure the noble Baroness that the Government have engaged quite extensively with the EU on reducing the burden of SPS checks and controls under the protocol, which she also highlighted.
Where we are right now—I am seeking to provide detail while also acknowledging what the noble Baroness, Lady Chapman, said—is that, currently to date, the EU has proposed that any veterinary agreement should be based on dynamic alignment; the Government believe that this would compromise UK sovereignty over our own laws, including our ability to strike trade deals. However, on the specific points that the noble Baroness raised, we remain open to broader negotiated solutions, and we hope that the talks taking place currently can secure a bespoke biosecurity assurance—I welcome the contribution of the noble Baroness, Lady Chapman, in this respect—which maintains our high standards for animal, plant and public health. I know that resonates with all noble Lords.
I will also provide some detail on where we are on both the Swiss and the New Zealand agreements. Of course, the EU has a precedent for making such agreements with other countries—as all noble Lords acknowledged, and I am grateful for that—either through stand-alone agreements, such as the EU-NZ veterinary agreement, or as part of wider agreements with trading partners such as Canada and Switzerland. The UK proposed an SPS model predicated on equivalence and similar to the EU-New Zealand model in the TCA negotiations last year and, indeed, in earlier negotiations and discussions with the EU on the Northern Ireland protocol. However, the EU rejected the possibility of an agreement based on equivalence. The Swiss-EU SPS arrangement is the model that the EU has put forward repeatedly to agree with the UK and is based on dynamic alignment. There is a difference here, but at the same time I appreciate both the tone and substance of this debate, and I want to assure noble Lords that we remain open to these specific points because they address the practical problems being experienced.
Let me say a brief word on the issue of statutory reporting, although I think I have already covered this point previously. As with any negotiations, this is a matter of the foreign affairs prerogative. As I said previously—and I have sought to provide a bit more detail on some of the context in my response—I will certainly seek to update noble Lords, and I appreciate the insights that the noble Baroness, Lady Doocey, has brought to this debate.
Turning now to the other contributions, including those from the noble Baronesses, Lady Ritchie and Lady Chapman, I will discuss Amendments 58, 60 and 63 together. These amendments would also place a number of requirements on the Government relating to various specific sectors within Northern Ireland, notably the publication of draft regulations and a sector-specific impact assessment, as well as to engage in consultations with representatives from those sectors. Let me say immediately that I entirely sympathise with the desire to ensure that we are properly considering the impact of legislation on all businesses within Northern Ireland. It is for this reason that we have engaged extensively with stakeholder groups across business and civic society in Northern Ireland, in the rest of the UK and internationally—I know that my noble friend Lord Caine will speak to this in subsequent groups; indeed, he covered this in our previous debates in Committee.
In addition to routine engagement, during the summer the Government held over 100 bespoke sessions with over 250 businesses, business representative organisations and regulators to inform the details of how the dual regulatory and trade boundary models should work in practice. In this respect, I can share with all noble Lords—and, in particular, with the noble Baroness, Lady Doocey—that we gained a lot of practical information from that, and we are reflecting on the wealth of feedback received as we continue to develop the details of the underlying regime. The regulations themselves will be the product of this very engagement with business to ensure that the implementation of the new regime is as smooth and operable as possible. Your Lordships’ House will have the opportunity—
Although what the Minister has just said is very welcome, ordinarily there would be engagement so that the Minister could make well-informed suggestions. Then, of course, a period of consultation on whatever ideas the Government intended on implementing would follow. Is the Minister saying that that process would be followed in this case?
I know that the noble Baroness, and other noble Lords—the noble Lord, Lord Purvis, among them—have pressed me on the issue of the detail of the draft regulations. That is, again, very much the process we have adopted to make sure that we are speaking to industry and businesses and reflecting those in the draft regulations that will be published. The regulations will be reflective, as I said earlier, of the wealth of the feedback we have received. The scrutiny of the regulations will be done in the usual fashion and, of course, the Government will provide all the usual accompanying material under parliamentary procedures. The full details of the new regime will be set out in and alongside the regulations made under the Bill, including any economic impacts where appropriate. This will allow Parliament to be informed in its scrutiny of the new regime when it has been put in place.
On the issue of a statutory duty to publish such material, as suggested in the amendments, the Government’s view is that it would not be appropriate to place a statutory duty on the Government. The legislation is needed to tackle the urgent problem we have sought to identify with the workings of the protocol in Northern Ireland. While we do not anticipate any issues with providing information before regulations are brought forward, we do not want to tie our hands unnecessarily in this respect.
Finally, I say to all noble Lords who have participated in this debate that I welcome these specifics, and I hope noble Lords will appreciate that I have sought answers and am listening during the course of Committee, as are my colleagues. I am seeking to provide a bit more detail on what we have but, while asking the noble Baroness to withdraw her amendment, I do value the insight and the practical and constructive nature of the amendments that have been tabled.
I thank the noble Baroness. That then begs the question: why is it not in her amendment? Why is it simply the consent of the Northern Ireland Assembly, which in fact removes it from cross-community consent? That is not what they are talking about here. If it had been, it would be in this. I listened very carefully to the noble Baroness, Lady Suttie, saying that this would be looked at on a later date. I trust that this will be taken on board. We will not move forward unless there is cross-community consent, and there is no cross-community consent and no unionist consent for this protocol, which they believe is a vehicle for taking Northern Ireland out of the United Kingdom.
My Lords, this is an extraordinary clause. The speech made by the noble Baroness, Lady Hoey, introducing this group, proved the point. She argued that Ministers could, under this clause, act in a way that is incompatible with the Act of Union. My interpretation of this clause is similar to that described by the noble Lord, Lord Pannick, in the discussion of the previous group, in that it gives Ministers the ability to do pretty much anything. There is no restriction on powers. Maybe the Minister had been briefed that there was. Clearly, in this clause at least, that is not the case. That is the point that many noble Lords have been trying to get across to Ministers, and it is the underlying reason for much of the unhappiness with this Bill.
It is probably a bit tedious for the noble Lord, Lord Bew, to listen to us wittering on about this again and again. I completely understand that, as it does seem rather separate from what is happening on the ground and the political issues that he quite rightly says the Bill is really all about. I totally agree with him on that. Nevertheless, the method that the Government are choosing to deal with these political issues is one which gives them these quite unprecedented powers. We have come across this sort of thing many times, but we have never seen it quite as blunt as this. That is why they are getting a sort of two-pronged dissatisfaction with this approach.
The amendment in my name refers specifically to subsections (2)(a) and (2)(b). This is the bit where Clause 22 makes it clear that Ministers would be breaking international obligations and gives them permission to do so. Obviously, if the Bill became law, Ministers would not be breaking domestic law because it would be domestic law, but they would be breaching their international obligations. Ministers’ answers on this issue have been far from convincing. How is passing the Bill responsible if we do not know what the Government are going to do? We do not know that because they are giving themselves such wide powers. If the powers were in some way restricted to issues relating to the problems that the Bill tries to solve, perhaps the Government would be on a firmer footing. However, we are at such a precarious point; for example, there may be elections and there may not be.
I am trying not to have a dog in this race but, from the discussion we have just heard, it is absolutely clear that the problems being described are real and need to be dealt with. They need a Government who are properly engaged and will deal with them seriously. A clause such as this one says the opposite to all communities. Who knows where this will go? There is obviously no trust in the Government on this issue. We have heard it; it is very clear. Even the people who broadly support the Government’s approach do not trust them to do this correctly and do right by them. That is a big problem. It is a problem here in getting support for this clause, but it sure as heck is also a problem on the ground in Northern Ireland.
The Government have got themselves into a real mess on this issue. The powers in the Bill are not constrained to a particular purpose. I just do not know how the Government will deal with this. We have been told that we will get a letter, as if this is a discussion that the Government could not have foreseen, anticipated and had proper answers for. While we are doing our job of going through this Bill, the Government do not have an answer on what was foreshadowed well by noble Lords’ contributions at Second Reading but have to go away and write us a letter. It is not good enough. We need to know the Government’s response to that issue, and particularly on this clause, before we can properly proceed.
I completely agree with everyone who said that we must have the restoration of the political institutions. Some people seem to think that the Bill will help but we disagree. We think that it is bad politics and will lead to more disappointment, probably disappointing the very people who have come here tonight to support the Government in this endeavour. This clause is a problem; the Minister has learned that very well, I think. I am afraid that listening to tonight’s exchanges has made me more convinced than I was before that we on these Benches cannot support this clause unless something shifts dramatically before we reach Report. I just do not know where we go with this Bill.
My Lords, I am grateful to all noble Lords who spoke in this debate. I rather hesitate to say this in front of the noble Lord, Lord Bew, who was taught at Cambridge by the great Tudor historian Sir Geoffrey Elton, but as we go through these debates, I feel I am becoming increasingly isolated in being a Member of your Lordships’ House who might still have a sneaking admiration for the reign of Henry VIII. Indeed, I confess that I have a portrait of Thomas Cromwell in my office. However, I will go no further because I do not want to provoke a debate with noble Lords about the 1533 Act of Restraint in Appeals and its preamble. I will therefore fast-forward, if I may, to 1800 and the Acts of Union, referred to in the amendment moved by the noble Baroness, Lady Hoey.
Let me say at the outset that I entirely sympathise with the noble Baroness’s position and amendment. Clause 1, as she pointed out, explains that the Acts of Union are not to be affected by provision of the protocol that does not have effect in the United Kingdom. I agree with her and noble Lords who have pointed out the fundamental importance of the Acts of Union as the bedrock of Northern Ireland’s constitutional position in the United Kingdom.
However, I am sorry to point out to the noble Baroness that her amendment has the potential to risk the exercise of the powers under the Bill. For example, the red lane in our new model will continue to apply EU rules to goods moving through Northern Ireland into the European Union and single market. This is crucial to ensuring that there is no hard border on the island of Ireland and to upholding the overall objectives of the Act of Union regarding the free flow of trade in the United Kingdom. The restrictions imposed by her amendment could risk the implementation of this revised operation of the protocol, which is designed to uphold our commitments to the union.
I know the noble Baroness is very supportive of the Bill, but this amendment could undermine the certainty that it seeks to provide. She and my noble friend Lord Dodds of Duncairn made a very large number of points around subjugation and so on. I hope she will appreciate that I cannot go into great detail at the Dispatch Box because, as she knows since she is a party to it, this amendment treads very much the same territory as is the subject of a live case in the Supreme Court, which I think is expected to be heard very shortly.
I reiterate my and this Conservative and Unionist Government’s—a label I proudly wear in your Lordships’ House—strong support for the union and Northern Ireland’s integral position within it. I have no hesitation in reiterating what we said at the end of last week about joint authority; it is simply incompatible with the provisions of the Belfast agreement and we will not countenance it. I assure the noble Baroness that we are determined to resolve the issues to which she alluded in her amendment this evening and, on that basis, urge her to withdraw it.
I turn to the amendments in the name of the noble Baroness, Lady Ritchie of Downpatrick. It has been said many times and in much detail, but I feel I have a duty to remind the House again that it is because of the operation of the protocol that the Northern Ireland Assembly has not been sitting since February, and the Bill aims specifically to restore political stability in Northern Ireland and facilitate the reconstituting of a fully functioning Executive and Assembly in line with the Belfast agreement. In the absence of functioning institutions, creating a legal requirement—as the amendment from the noble Baroness would do—that consent from the Assembly be granted before regulations can be made under the Bill risks in these circumstances setting a test that simply cannot be met, because there is no functioning Assembly.
This amendment would also be constitutionally problematic, effectively limiting the UK Government’s ability to exercise their powers in excepted and reserved areas of policy such as international affairs and trade, respectively. Given that it would also apply to the commencement power, it would make the coming into force of legislation of this Parliament subject to a veto by the Northern Ireland Assembly. That would affect this Parliament’s right to legislate for Northern Ireland, something the Belfast agreement makes very clear is unaffected; as such, the Government cannot accept it. For that reason, I ask the noble Baroness not to press her Amendments 46 and 55.
My Lords, I will be very brief. I do not want to spend too much time on this amendment. Essentially, what we are asking for is a process in Parliament in the event of an agreement being reached. We want the Government to succeed in getting an agreement and think it is a helpful safeguard to allow the elected House to express its view and for this House to debate a draft of the agreement. It would be especially useful, I suggest, if the Northern Ireland Assembly is not restored in time. It would be helpful because if it is not and there is no debate in Parliament, who knows what they might be agreeing to? There would not be an opportunity for anybody’s elected representatives anywhere to have a debate about what is going to happen, and we think that is not ideal, given the history of how we got to where we are.
If Ministers are unable to achieve a deal and have exhausted legal routes under the protocol and wish to use the powers in the Bill, they should have to follow the steps in subsection (2) of this amendment, which would include a detailed impact assessment and proper consultation with Northern Ireland businesses on proposed regulations.
We have had many of these debates already and I do not propose going over each element of this in great detail now. Ministers know how we feel about consultation, draft regulations, the involvement of Northern Ireland and listening to businesses. So I think I will just leave it at that and I beg to move.
My Lords, I thank the noble Baroness for the amendment and her explanation. On her second point about consultation, I think the Government have rehearsed this point several times and the record of the Government’s position stands. It totally resonates with us. I have sought to the extent that I can to give reassurance of continued consultation in that respect.
Turning specifically to Amendment 57, on the supremacy of the House of Commons and giving the vote, I understand where the noble Baroness is coming from on this. However, I once again state quite clearly that the procedures under the Constitutional Reform and Governance Act—CRaG 2010—will apply to any qualifying treaty that needs to be implemented by regulations made under the Bill. The Act already provides for appropriate scrutiny and I hope that, while she may not be totally satisfied, based on the fact that she has tabled this amendment, I once again give her that reassurance. I am sure that we will return to several aspects of this, particularly as we move through to other stages of the Bill.
Again, I note the point she is making about the importance of parliamentary scrutiny, but I hope at this time she is minded to withdraw her amendment.
I do not really feel the need to reply. I think we have said everything that can be said on this topic through these debates, so I beg leave to withdraw.
Similarly, these amendments would require the Secretary of State to publish and consult on draft regulations relating to various sectors of the Northern Ireland economy—including construction, electronics, energy and manufacturing—prior to using powers under the Bill to make regulations affecting those sectors. We want to see these draft regulations. They keep coming up. We have made our contentment with going to Report conditional upon them; they are very important to us and, I believe, to sectors in Northern Ireland.
We have previously had interesting debates on the merits of a UK-EU veterinary agreement and the importance of proper consultation with food-focused sectors of the economy, but it is important to remember that Northern Ireland businesses operate in every imaginable field, so these amendments cite a variety of sectors. We could have gone further—it is not an exhaustive list by any means—but we wanted to highlight to Ministers the unique challenges faced by businesses in Northern Ireland. Manufacturing, in particular, is having a tough time at present, with supply chains still experiencing disruption and inflation adding to business costs. In August, the Northern Ireland Business Brexit Working Group said that using the powers under the Bill would
“create a myriad of reputational, legal and commercial risks for many of our businesses”,
putting at risk Northern Ireland’s position as
“a top performing region in exporting goods”.
My noble friend Lord Hain has previously spoken about the challenges facing the energy sector in Northern Ireland, and the ongoing uncertainty around future trade terms is creating its own difficulties for the other sectors mentioned in these amendments.
We continue to hope that the protocol can be made to work but, if the Government are to insist on their unilateral action, they need to fully involve the businesses that are operating on the ground, trying to fill and satisfy their order books. It is an incredibly difficult time for businesses anywhere in the UK but you cannot listen to the debates that we are having and not understand how much more difficult it is to plan and run your business in Northern Ireland. Some of the problems are caused, of course, by the protocol that we all want to see fixed; others, I am afraid, are caused just by the continuing uncertainty that has been brought about by this situation. I beg to move.
My Lords, I will speak to Amendment 59. Again, I suppose the final thing is about approach. There is nothing the noble Baroness has said that I disagree with, in that, yes, we are seeking to provide clarity to Northern Ireland businesses. I totally subscribe to what the noble Baroness said about problems arising from the operation of the protocol but that, equally, there are wider issues that businesses across the United Kingdom, and indeed globally, are facing.
I fully sympathise and align myself with the desire to ensure that we consider the full impact of our legislation and its practical application for businesses. My noble friend Lord Caine previously detailed some of the groups that we are working with; indeed, the Northern Ireland Business Brexit Working Group, which the noble Baroness mentioned, is one of them. We will continue to engage with them. We have had quite extended discussions and debates on the publication of regulations, and I have acknowledged that I fully recognise the desire to do so, and to ensure the scrutiny of these regulations in the usual fashion. Equally, our view is very clear that these regulations also need to be fully discussed—a point agreed on by all noble Lords—to ensure that businesses can make them operable in a practical sense. Notwithstanding that, I hope the noble Baroness will be minded at this time to withdraw her amendment.
I am obviously happy to withdraw the amendment. I note what the Minister just said about understanding our desire to see the draft regulations and his desire to make sure that they are worked up—I think he said “consulted on with business” or words to that effect. However, we had asked for draft regulations before we moved to Report. Before I sit down—that is the phrase we use here—can he indicate whether he anticipates that the Government will be able to provide that?
My Lords, I will have to disappoint the noble Baroness on that point. I cannot give a specific commitment. The material will be published in due course. I fully recognise and note what the noble Baroness has said.
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Lords ChamberIf the noble Lord’s position is that the EU is acting in bad faith, the United Kingdom, if it takes that view, is perfectly entitled to use the procedures set out in the protocol of independent arbitration—if it does not like that, it can go to the Court of Justice—to resolve any dispute. What the United Kingdom cannot do is ignore the dispute resolution mechanisms that are set out in the protocol and simply make an assertion that it thinks there is no good faith. Indeed, I had not understood it to be the position of the Government at the moment that there was no good faith. They are about to enter into negotiations.
My Lords, it is certainly my understanding that the negotiations are being undertaken in good faith on both sides, and it would be useful to have that confirmed by Ministers when they reply.
There are a few issues here, but I say first that it is very helpful to have the noble Lord, Lord Dodds, make his contribution on his concerns about chapter 10 of the protocol, because sometimes our discussions can get a little philosophical—that may be the wrong word—and it is very helpful to have them grounded in reality. His view is that he does not want a scheme that is any different to that which exists in the rest of the United Kingdom. That is understood and we know why he thinks that. We may not feel that it is realistic in the circumstances that we find ourselves in after Brexit, but there are most certainly good prospects to negotiate, come to agreement and perhaps find exemptions that would give him close enough to what he needs to be able to move us forward and give clarity and certainty to businesses in Northern Ireland, which is surely what we all want to see.
I am worried about the potential for retaliatory measures should Clause 12 of the Bill come into force. We know that this is something the EU is deeply concerned about. That does not mean that we cannot negotiate a much better position for ourselves, but there is the prospect of some form of retaliatory measure being forthcoming from the EU. I would like to know from the Minister what assessment has been made of the potential for this—although I am not quite sure which Minister to address my gaze to on this.
It should be to me.
That is helpful, thank you. What kind of measures do we anticipate, and what would be their impact? It is all very well to play hardball and say, “This is what we will do”, but that will always have a consequence and we need to understand what that might be. Not to do so would be deeply irresponsible.
Then there is the issue of powers. A lot has been said and I agree with pretty much all of it. Clause 12(3), which the noble and learned Lord, Lord Judge, referred to, says
“may, by regulations, make any provision which the Minister considers appropriate in connection with any provision of the … Protocol to which this section relates.”
That is incredibly broad and we ask whether it is necessary for it to be so broad. If I have understood the amendment tabled by the noble Lord, Lord Leigh, correctly, he seeks to put some sort of frame around it. We are all very concerned about where those powers might lead us.
The problem is that we have to look at this in conjunction with the Subsidy Control Act, which is itself very broad, has powers for Ministers and lacks clarity about what the UK Government intend for Great Britain’s subsidy regime. We are compounding one unknown with another. That is quite a lot for noble Lords to swallow. We have been asked to show a lot of faith in Ministers when really what we need, and what the noble Lord, Lord Dodds, has signalled he would like too, is some more information and draft regulations. We want to know where we are going with all this so that we can assess whether it will be the right approach to benefit businesses in Northern Ireland and answer the challenge made by the DUP. At the moment, I can see a set of circumstances in which it would not.
It is right that these issues are resolvable only by negotiation; we all know that. We have to start accepting that and asking ourselves whether the Bill’s approach will assist those negotiations in reaching a positive outcome. My noble friend Lady Ritchie said that this is something where we want the voice of the Northern Ireland Assembly. We want to know what MLAs from all communities have to say. It really matters that we hear from all sides, because this is about solving problems, not making things worse. The Bill really does risk making things worse.
The only other thing I would add is that there is now a different subsidy control regime in Great Britain, but where are this interventionist Conservative Government, who are making use of their new powers up and down the country? Speaking as somebody from the north-east of England, we see lots of tinkering and plenty of things that we could have done whether we were in or outside the EU. I do not particularly see that there will be the massive difference that warrants the kind of tension this is leading to. I suggest that the amendments tabled by the noble Lord, Lord Purvis, and my own are designed to be helpful. These are issues that we will not make progress on through this Bill.
I agree with the noble Baroness that I was trying to create a framework, in a very amateurish way that is way above my normal pay grade. I take her point that she is trying to do the same thing with her Amendment 18, which is sensible, but does she think removing Clause 12 would weaken or strengthen our hand in the negotiations? If a vote on the clause standing part was to take place, what would be her plans for those people planning EIS investments in the future?
That is a very helpful question. I do not think the situation is about being with or without Clause 12. The Bill places the future of the regime in Northern Ireland in some doubt because nobody is clear about what is to be negotiated, what the outcome will be and what the rules will be. Even with Clause 12 in the Bill, we do not know the answer to those questions. The negotiations need to pick up pace, and they need political leadership as well as technical negotiations at official level. Experience tells us that you need that leadership—that buy-in and that clout—from the Prime Minister down. That is how you get resolution, and that is the approach I would take. I do not think the Bill, or this clause, are the make-or-break questions to resolve this issue.
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.
Can I take from what the Minister said that the intention is that there would be one UK-wide scheme? If that is the case, that surely could go in the Bill.
I acknowledge what the noble Baroness has said. As I said, what we are looking to do in the basis of the Bill is to provide clarity and simplification in the current procedures.
No, I think we are. That is exactly what we are seeking to do. It is clear that the noble Baroness remains unconvinced.
Turning back to the amendments themselves—
(2 years ago)
Lords ChamberThis has been a much more wide-ranging debate than I had anticipated. I guess we will see a lot of that in Committee, because, as many noble Lords observed, of the fundamental nature of our objection to what the Government are trying to do. However, this group of amendments is timely and makes an important point. Whether or not we agree that we should be supporting these to the letter is not, I think, what the noble Baronesses, Lady Suttie and Lady Ritchie, were trying to ask in tabling them. They were trying to make an important point. The issues which the noble Lord, Lord Frost, quite rightly reminds us are real on the ground in Northern Ireland absolutely are. However, this situation is now unique to Northern Ireland, and in every instance where there are a set of problems that relate to one specific geographical area—perhaps especially Northern Ireland, but it could be Wales or the north of England—the idea that you would try to resolve them unilaterally, without proper engagement with communities who live there, is unrealistic. Whatever happens with our deliberations on the Bill, with the negotiations or even if there are to be elections, and as a consequence of all that, we will not be able to move forward unless all the parties in Northern Ireland get together and agree a way to proceed. Any other way of going about this will not provide us with a durable solution, and that durability of an agreement is what we all want.
The Government were warned about the protocol at the time. It has been said, “But we were in a bit of a hurry because we weren’t allowed to leave without a deal; we just had to do something and this was better than nothing.” We have heard all that, and whatever we think about a Government making that kind of argument when they had an 80-seat majority and could pretty much at that point do whatever they wanted, we are where we are. However, these problems were completely foreseeable, and I regret that we have got to where we are.
Some people say that we need to expedite the Bill—I think that the noble Lord, Lord Frost, said this—and move on. That is fine, but to do what? What is it that the Government want to do instead? We do not know. Last week, the noble Lord, Lord Dodds, said he was concerned that he did not know. We have not seen draft regulations. We are being asked to agree to something without knowing what it is we will be left with at the end of the process; that is not reasonable for this Committee.
At the risk of making a wide-ranging and ponderous speech that deviates all over the place and does not address these amendments, let me say that saying, “Oh well, some people on your side said it was a bad idea at the time; therefore we must never do it”, is not a serious response to the challenge from the noble Lord, Lord Pannick, about this being the legal mechanism to which the UK Government agreed. We have not heard an adequate response from the Government on why they now view Article 16 as an inadequate provision that would not address the issues with the protocol that they say, and we agree, need to be resolved.
Also, on the idea that having this issue on the table will somehow make the EU more forthcoming in giving us what we want—although we lack clarity on that—I think we could be forgiven for not placing too much faith in the brilliance of the UK’s negotiating ability, given that it has brought us to precisely where we are today. The point that the noble Baronesses were making in tabling these amendments is a very important one, and one that we want to take seriously—especially in what the noble Lord, Lord Dodds, said about the cross-community nature of that involvement. We absolutely take that on board but it remains a point of principle, and one we should not lose, that we cannot do things to or act unilaterally in a way that has a huge impact on Northern Ireland without proper, full engagement with the communities there.
My Lords, I trust that the Committee will forgive me if I, somewhat unfashionably, pay lip service to the Standing Orders of the House and actually speak to the amendments. In so doing, I want to try to live up to the comments from my noble friend Lord Cormack. As an admirer of Harold Macmillan and the Baldwinite tradition in the Conservative Party, I will try to deliver my comments in that quiet, calm, deliberative way of which Mr Macmillan was so fond.
I am grateful to the noble Lord, Lord Kerr of Kinlochard, for his kind words. I fear that, from now on, I will only disappoint him. Without going over the history, I say that he is well aware of what my views were three years ago but, as I have said many times, I am less interested in how we got here and more interested in how we can move on and get out of here into a more satisfactory state of affairs.
Before I turn directly to the amendments, as this is my first opportunity to speak from the Front Bench since the passing of May Blood, I want to reiterate a number of the comments made about her last week. She was an absolutely fearless and tireless champion of the rights of everybody in Northern Ireland. Her record in bringing people together, particularly through her work on integrated education, was absolutely inspirational.
I have just been sent a text. Some people will have come across a chap called Bob Mauro, who was the director of Irish Studies at Boston College; I see the noble Lord, Lord Hain, nodding. Sadly, I have just been informed that he has passed away. He was a man with whom those of us who have been involved in the affairs of Northern Ireland over a number of years had a great many dealings, so our sympathies go to his family and colleagues as well.
I emphasise a couple of points on which I strongly agree with the noble Baronesses, Lady Suttie and Lady Ritchie of Downpatrick, and which underline the frustrations that we all share in this House over the lack of devolved government since February. A number of us have sadly been through this experience on too many occasions in recent years, and Members opposite went through it from 2002 to 2007. It is not a satisfactory state of affairs. We are firmly committed to the Belfast agreement, to its institutions and to getting devolved government back up and running as soon as possible. My right honourable friend the Secretary of State will have this at the top of his agenda when he meets the political parties in Northern Ireland over the coming days.
Amendments 4 and 5, in the names of the noble Baronesses, would essentially, by requiring the prior approval of the Northern Ireland Assembly, undermine the ability to exclude elements of the protocol and therefore undermine the entire operation of the Bill. In application, these amendments, if passed, would be wrecking amendments. We are very committed to restoring a fully functioning Executive and Assembly, but I remind the Committee that it is because of the operation of the protocol in its current form that the Northern Ireland Assembly has not sat since February. Sadly, we cannot be sure how long that state of affairs will persist. Therefore, these amendments risk setting a test which, in the current circumstances, could not be met due to the lack of an Assembly. The disapplication of elements of the protocol is also an excepted matter of foreign affairs reserved for the UK Government. Although we of course engage with parties in Northern Ireland, it would be improper, effectively, to transfer a new competence to a devolved Assembly in this way.
I assure the noble Lord, Lord Purvis of Tweed, that we are committed to the Sewel convention and that we are pursuing options for obtaining legislative consent to the Bill from devolved Administrations. The Permanent Under-Secretary at the Foreign, Commonwealth and Development Office wrote to the head of the Northern Ireland Civil Service regarding legislative consent and it remains our hope that we can reach a positive resolution on this point as soon as the institutions are restored. Regarding conversations with MLAs and political parties in Northern Ireland, I assure the noble Lord that these continue all the time, involving the Secretary of State, the Minister of State and me. We are in Northern Ireland, talking to political parties, all the time. It will not surprise the noble Lord that these issues surface from time to time. Without going into details of individual conversations, we continue to engage.
The noble Baroness, Lady Suttie, referred to the letter sent earlier this year to the then Prime Minister, setting out opposition to the protocol Bill. This was raised by a number of noble Lords. Like the noble Lord, Lord Dodds of Duncairn, I am somewhat surprised, as one who spent many years as an adviser in the Northern Ireland Office and was told that particular arrangements for Northern Ireland were completely unsuitable because they did not have the support of a minority, now to be told that somehow majority rule, after a 50-year absence, ought to make a return. As a number of noble Lords have pointed out, cross-community consent is at the heart of the Belfast agreement. Following the May election, the largest single designation in the Assembly remains unionist. Under the 1998 rules, we would still be looking at a unionist First Minister. That remains the largest single designation and it is worth pointing out again that not a single unionist Member of that largest designation in the Assembly supports the protocol in its current form. In those circumstances, it is fair to point out that we have a problem.
My Lords, I shall speak also to Clauses 5 and 6 standing part. There is consistency in some of the arguments to some extent, so this will not necessarily need to be as long.
As the DPRRC indicated, the Government have not yet formed their policy on the precise elements that they are seeking powers for. The DPRRC indicated and highlighted—I agree with it—that we should not legislate when government has not yet formulated its policy. Let us be clear that the Government’s memorandum states that the powers that they seek under these clauses could make criminal offences by negative instrument. Can the Minister confirm that in his response? We should not make new criminal offences by negative instrument.
The Government also state that they need these powers but should not present them through primary legislation. This includes certain areas of new powers for HMRC and other agencies. In primary legislation—in the Trade Act and elsewhere—proper procedures for dating sharing on customs arrangements within the UK have been brought forward. The Government felt that primary legislation was necessary for that, but, under this Bill, they say that they do not believe that primary legislation is the correct approach for it. This is simply not consistent.
I am interested to know what the Government consider to be the interactions with the Taxation (Cross-border Trade) Act 2018. The regulation-making powers under this legislation, providing more powers for HMRC legislative competence, were not provided for Northern Ireland under that Act. I am not sure what has changed. The interactions between Sections 30A, 30B and 30C of that Act are not clear.
Secondly, we can perhaps explore what the Government seek to do on the use of delegated powers to make new law in an area where we have made an international agreement—as we heard, they have not provided illustration for it. The Government’s response to the European Union’s proposals in October 2021 has not been entirely clear either. I am not sure whether they supported its proposals for having just one certificate per consignment of food products, rather than per product—presumably, that would have a major impact on the HMRC statistics and declarations that the Minister referred to. The European Union indicated that that would remove 80% of checks on products of animal origin, or new procedures for prepared meats, such as sausages, import of which into the EU is generally prohibited. So I am not sure what impact assessment was carried out for the EU proposals, had they been fully adopted.
As the noble Lord, Lord Dodds, said, the Ministers took credit for the Trader Support Service, but they now seem to suggest that it has failed. Why? What has been the impact of the Trader Support Service? As I understand, it raises all the documentation and it states that it has been successful. It is on a lucrative contract from Fujitsu Services Ltd, which is at the centre of the Post Office scandal, so what is the Minister’s view about how Fujitsu has carried out its contract? Fundamentally, legislating first before introducing proposals should not be done, and trying to say that legislating for areas where agreement can be made will not be sustainable elsewhere.
I close by thinking that there must be a prize somewhere for government irony. As we know, the delegated powers memorandum on Clause 6 states that it is a breach of an “international obligation”. Paragraph 56 says that
“regulatory procedures … can be updated to ensure compliance with, or give effect to, any international obligation or arrangement to which the United Kingdom is a party.”
That is quite welcome. However, it is a shame that these powers are removing those obligations and are providing such unprecedented breadth to the regulation-making powers for Ministers. The case has not been made; therefore I beg to move.
I will speak briefly to Amendments 10 and 11, which we have tabled because, like the noble Lord, Lord Purvis, we too wanted to highlight concerns about these issues. As I am sure noble Lords can see, in the current Bill, delegated powers are to be used when Ministers consider it “appropriate”; we would change this to “necessary”. Prior to tabling these amendments, we have signalled our general concerns about delegated powers fairly consistently throughout the process of leaving the EU, since the EU withdrawal Bill in 2018. It is disappointing Ministers’ fondness for this technique seems to have grown; we now see it frequently in things that are quite wide-ranging. I was recently involved with the Schools Bill, which was riddled with these powers because, frankly, the Government did not know what they wanted to do on a wide policy area, so inserted a bunch of Henry VIII powers to give themselves the flexibility to backfill their argument later and decide what they wanted to do once the Bill had passed. Obviously, there was a huge row about that and the Schools Bill is no more, so we can only hope that lessons were learned.
We have been raising concerns again and again about how the Government are just relying on delegated powers, but for some reason the scope of the powers in EU-related Bills seems incredibly wide and we are starting to tease out, with the Minister, some of their intentions. However, an intention stated at the Dispatch Box—or something indicated in other government documents—is not sufficient when we are talking about these sorts of issues. What we really want is clarity and the ability to scrutinise and have those discussions on the Floor of this House, but the way the Government are going about this denies us this opportunity. One of our main concerns is the Government deciding to use skeleton Bills in the way they are.
These are quite general concerns. As we have heard, there are much bigger concerns about the Bill and we have covered some in our debates today and last week. We fully understand the concerns raised about Clauses 5 and 6, which enable the creation of new customs arrangements without primary legislation. The noble Lord, Lord Purvis, did a very effective job of going into those in some detail, which I do not feel I need to repeat. This is quite a precedent to set and we feel deeply uncomfortable about delegating these kinds of powers to the Treasury and its agencies. In the past—I mentioned the Schools Bill, but there have been other examples—the Government have backed off, removed some of these powers from legislation and changed tack by putting in place genuine checks on their use. In all honesty, I do not think that particularly helps us with this Bill because, as many have said, a whole face of make-up could be applied to this Bill but it really would not help.
That said, it is important that we, as a House, put down a marker and make our view known to the Government on this issue of delegated powers, because this is quite an extreme example in the Bill. Perhaps when some more stability is available to Ministers, this might be something we start to see less of, because the government agenda would become clearer. I must say—noble Lords can hold me to this—that should my party win power in the coming months or years, I hope that this is not an approach that we would seek to take. I am very well aware that this is on the record and will be quoted back to me. Such is our concern about the overuse of these powers that I am very happy to be held to my words.
I thank the noble Lord and the noble Baroness. On that final point from the noble Baroness, Lady Chapman, I am sure it will not only be held up for scrutiny but highlighted in several colours. Of course, we look forward to robust debates, and I am sure I speak for everyone in your Lordships’ House in saying this.
First and foremost, I will not go over what we have already discussed. I have heard noble Lords very clearly. Addressing the noble Lord, Lord Purvis, specifically, I am aware of the details of what the DPRRC report argues, and therefore I assure noble Lords of my good offices in seeking to have the report published on the Government’s response to the issues raised by not just that committee but the Constitution Committee.
In response to the amendments in front of us, the DPRRC report argues that Clause 5(1) contains an inappropriate delegation of power—on the basis that the skeleton construction is not justified by the circumstances and that it relates to matters of international law—and recommends it be removed. While noble Lords will have different perspectives, I have already discussed why the Government feel that there is an urgency in tabling this Bill, as well as the importance of flexibility in our approach in discussions and negotiations elsewhere, particularly with our colleagues and friends in the EU.
In relation to future policy direction, the Bill and the accompanying delegated powers memorandum provide a description of the types of circumstances under which regulations laid under Clause 5(1) may be made. This also includes necessary processes on UK or non-EU destined goods, the application of pre or post-movement requirements for those movements and the ability to undertake any checks or controls necessary to safeguard animal, plant and human health. These processes and their requirements may also be subject to change over time—due to changing risks, technologies and business practices—and it would not be proportionate to table new primary legislation every time this occurred. I have already referred to the details that would be required in this respect.
The noble Lord, Lord Purvis, referred to a couple of issues about criminal offences within the instruments and the Taxation (Cross-border Trade) Act. I have asked for responses to that, so I will write to the noble Lord specifically on those two points and will share it with your Lordships.
I now turn to Amendments 10 and 11 in the name of the noble Baroness, Lady Chapman of Darlington. These amendments would restrict the use of certain powers in the Bill to make provision only on that which “is necessary”, rather than provision which “the Minister considers appropriate”.
I say to the noble Baroness, Lady Chapman, that, as someone said to me over the weekend, after 10 years on the Front Bench, this is not an argument that I am dealing with for the first time. I acknowledge that there have been various Bills where this language has come in. I just mention to the noble Lord, Lord Purvis, that I even recall that, in 2017, when I was taking through the Sanctions and Anti-Money Laundering Bill, we had similar discussions on the use of these words.
I think I may be a bit premature; I was going to ask the Minister for an example, but I have a feeling that he was about to give one.
The example that I was just detailing is that, in this clause, this would potentially limit the ability to design a green lane that aims to preserve the unity of the UK internal market and minimises risks to the EU’s internal market. It may also prevent the Government responding to issues facing Northern Ireland in a flexible way which, in turn, will have a negative impact on Northern Irish businesses and individuals. The issue was well-trodden ground in important legislation in recent years, particularly the EU withdrawal Act in 2018 and the withdrawal agreement Act, where your Lordships’ House accepted that “appropriate” is in fact appropriate. I therefore hope that the noble Baroness will feel able not to press her amendments on that basis.
The example was good, but I am not sure that it meets the question in my amendment. I would have thought that a Minister would be able to make the regulation as he referred to in his example using the wording suggested in my amendment.
As I have alluded to, it is a question of where that bar is set. The Government are, in this instance, looking for that extra level of flexibility for the Minister concerned to be able to make that appropriate act. I accept what the noble Baroness is saying regarding her amendment. Certainly, I am sure that there will be some practical examples and insights that we will exchange on what can be met by those particular tests.
Clause 5 ensures that a Minister of the Crown also has the power to make regulations in relation to the movement of goods to which Clause 4 relates—[Interruption.]—my apologies: that is my phone. This is what happens when you have a 10 year-old and an eight year-old at home—they may be providing me with an answer to the question from the noble Baroness, Lady Chapman.
Specifically, the clause provides for the creation of secondary legislation, which will enable Ministers to define how the green and red lanes work in practice. Regulations made under this power may, in particular, provide for the application of any checks and controls before or after a movement of goods on UK or non-EU destined goods moving into Northern Ireland in order to ensure that appropriate processes are in place to manage, for example, biosecurity risks. Such powers may also be used to ensure that goods that are heading to the EU comply with relevant regulatory processes, such as sanitary and phytosanitary controls. Much of this is operationally focused or deals with the processes to be applied by the relevant government departments. We believe that this clause is essential to enable the appropriate Minister to have the flexibility to deliver the UK’s proposals for this new regime for the movement of goods.
I turn briefly to Clause 6. Again, the noble Baroness, Lady Chapman, alluded to the issue of the Treasury and HMRC having the power to make regulations in relation to the movement of goods for customs matters. Alongside Clause 5, this will enable the delivery of new green-lane arrangements, which remove unnecessary costs and paperwork for businesses trading within the UK. We heard in the previous debate from the noble Lord, Lord Dodds, on challenges being faced by businesses.
Specifically, the clause provides for the creation of secondary legislation to administer the green lane through appropriate checks, controls and administrative processes for goods that would otherwise be subject to EU customs rules. It is the Government’s view that this clause is absolutely essential to enable a Minister of the Crown to have the flexibility to deliver the UK’s proposals for the green and red lane arrangements. Taking power to provide for the regime is required and the precise detail of the regime will be properly subject to consultation with stakeholders. I therefore recommend that this clause stand part of the Bill.
(2 years, 6 months ago)
Lords ChamberMy Lords, I am grateful to the Minister for repeating this important Statement. That the Government have been preparing legislation relating to the Northern Ireland protocol is no secret. Senior members of the Cabinet have taken every opportunity to issue threats to this effect in recent weeks, but we should be thankful that the tone of the ministerial intervention today has shifted somewhat. We have gone from what felt like the inevitability of unilateral action to this proposed Bill being a mere insurance policy. However, as I will return to, and as many commentators have said in recent times, the Government’s approach to this challenge posed by the protocol has been erratic and at times reckless.
The backdrop of the dispute over the protocol now is, in part, the crucial question of the formation of a new Northern Ireland Executive. The Prime Minister was clear in his Belfast Telegraph article that he believes that Sinn Féin, as the largest party following the Assembly elections, has secured the position of nominating the First Minister. He called for the DUP to nominate a Speaker and First Minister as a matter of urgency, to get the Assembly up and running, and for once we are in full agreement with the Prime Minister. The people of Northern Ireland want their leaders, of all parties, to get on with the job. The cost of living crisis continues to bite, and the Assembly and the Executive will have an important role to play in the coming months. Politicians must, first and foremost, fulfil those duties while negotiations on the protocol—which the majority of newly elected MLAs wish to see fixed, not scrapped—continue.
We on these Benches understand the concerns regarding the operation of the Northern Ireland protocol. We have long called on both sides to show the flexibility needed to ensure that the protocol works in a way that enjoys the highest possible public support. The operation of the protocol has revealed tensions which need to be addressed; however, it has also been used by some to stoke tensions, and such behaviour is highly irresponsible. To uphold the principles of the Belfast/Good Friday agreement and sustain the peace that it brought us, we need willing from both the EU and the UK Government. Checks must be reduced to the absolute minimum necessary.
There must be an element of common sense as to exactly what trade is subject to which checks. It cannot be right that goods from Great Britain which have no realistic prospect of moving into the EU single market are subject to excessive, costly and burdensome checks that only hamper business, inhibit trade and undermine confidence and consent. We have long called on both sides to show the flexibility needed to resolve this. We need calm heads, responsible leadership and serious diplomacy from both sides, statecraft, diligence and graft. While the process is under way, the people of Northern Ireland need and deserve a functioning Government who reflect the outcome of elections, as well as restoring the institutions created by the Belfast/Good Friday agreement.
The Government negotiated this deal. They signed it and ran an election campaign all about it. The Prime Minister refused to be upfront about the implications of his agreement, and that is his failure. Yesterday, in an interview with the BBC’s new political editor, the Prime Minister acknowledged that the Northern Ireland protocol was his creation. It is important that he has finally taken responsibility for negotiating an agreement that required, by its very design, some checks in the Irish Sea.
Aspects of what the Government are proposing on the protocol are helpful. However, these must be subject to urgent, detailed and technical negotiations, rather than endless media briefings. Labour has long argued that a veterinary agreement with the EU would eliminate the vast majority of checks on produce going from Great Britain to Northern Ireland. Although this would not solve every problem—I accept that—it would be a sensible way forward. Crucially, it would act as the starting point for all sides to work with communities and businesses in Northern Ireland to find other creative solutions to minimise these checks.
One thing which is certain in this process is that the breaking of an international treaty will do nothing to improve the current situation. The proposed Bill may have been called an insurance policy but, if it is taken forward, it would amount to a major breach of our international commitments. There is no long-term unilateral solution to the issues with the protocol, and to pretend otherwise is disingenuous and will make achieving a negotiated settlement even harder. The EU has already said that it will respond to any breaches of the protocol with all measures at its disposal. We think that that is code for trade friction, which affects the cost of living and which people across this country do not want and cannot possibly afford, given current pressures.
Simon Hoare, chair of the Northern Ireland Select Committee, has said:
“Respect for the rule of law runs deep in our Tory veins, and I find it extraordinary that a Tory Government needs to be reminded of that.”
I suspect that the Minister will have some sympathy for what his colleague has said today. I hope that he will impress on the Foreign Secretary the need to de-escalate this situation and to take the right and responsible approach that is in the long-term interests of the people of Northern Ireland and the UK as a whole.
My Lords, while political knockabout is tempting in the surreal circumstance to which the Government have brought us in respect of the Northern Ireland protocol, the situation is too serious and dangerous for that. The Foreign Secretary’s claim that the Government’s
“first priority is to uphold the Belfast/Good Friday agreement in all its dimensions”
does not stand up to scrutiny. The protocol exists solely because of the nature of Brexit and the hardest of hard versions that the Johnson Government and their DUP allies chose, despite the voters of Northern Ireland not supporting a Brexit of any kind. Brexit was the original sin. The Government’s choice meant that the UK and Ireland were not aligned within the customs union or the single market. The result was the need to manage the particular circumstances of Northern Ireland through special arrangements. It was impossible to have the hard Brexit cake and to eat the no-checks-across-the-Irish-Sea cherry. However, the Prime Minister and his supporters seem never to have accepted the consequences of their choices and the treaties they signed.
The protocol can be changed only by an agreement between the UK and the EU. At the time it was signed, there was still hope that the trade agreement would supersede the protocol and make it unnecessary. Hence, the Government’s impact assessment in October 2019 said:
“The Government intends to conclude a future relationship with the EU that is centred on a comprehensive free trade agreement with the EU and the outcome of this will affect the operation of the protocol.”
However, that comprehensive FTA never materialised, so the protocol—imperfect as it undoubtedly is—is still the essential best of a bad job. The Government’s announced action will put the UK in potential breach of international law. Like the noble Baroness, I will quote the Conservative chair of the Northern Ireland Affairs Committee, Simon Hoare, who quoted Margaret Thatcher as saying:
“The first duty of Government is to uphold the law. If it tries to bob and weave and duck around that duty when it’s inconvenient … then nothing is safe—not home, not liberty, not life itself.”
The Assembly election results show that a clear majority of voters and elected Assembly members not only want to see the political institutions operating immediately but generally support the protocol. This also applies to the vast majority of the business community, who also want a pragmatic, not confrontational, approach.
The dual-market access that Northern Ireland enjoys is an economic asset, but the Government are not listening to these messages. In the strong words of my friend in the other place, Stephen Farry of the Lib Dems’ sister party, Alliance, which did so well in the Assembly elections:
“This proposed action is unwanted and unwarranted. Indeed, it may prove to be counterproductive and destructive. Much of the rationale cited by the Government is disingenuous … Any action or even threat of action that takes Northern Ireland out of the single market, including disapplying the jurisdiction of the ECJ, will undermine our region”—
I repeat, “will undermine our region”—
“as an investment location. It would also lead to even greater political instability.”
These are serious words for a very serious situation.
The disingenuous nature of the Foreign Secretary’s Statement is illustrated in her assertion that
“all Northern Ireland’s political parties agree on the need for changes to the protocol.”
Of course those parties, including Alliance, which accept the protocol still want to see improvements in its operation, because it is certainly necessary to address a range of issues. However, the way forward lies in partnership and mutual agreement between the UK and EU around legal and sustainable solutions to reduce the nature and level of checks through various mitigations and flexibilities in the operation of the protocol, or via building on the trade and co-operation agreement.
I note that the Foreign Secretary says that our preference is to reach a negotiated settlement with the EU—so please just do it. One extra that the Government should pursue is a veterinary or SPS agreement; there is a clear alternative here to just whingeing about SPS checks. Can the Minister explain properly why this is not being pursued? Yes, the EU should display even more flexibility than it has already—over medicines, for instance—but it also says that the flexibilities it has proposed have not been fully explored by the UK Government, and it cannot be expected to do more when the Government display belligerence instead of co-operation and undermine trust, especially as some of the solutions involve the EU subcontracting functions to UK authorities.
To risk a trade war with the EU at a time when there is a military war in Europe and when the UK economy is weak and vulnerable is deeply irresponsible. No wonder the Cabinet is split. I hope that the necessary negotiations will be taken forward.
(2 years, 6 months ago)
Lords ChamberMy Lords, it is a pleasure to follow the noble Lord, Lord Storey, and I am grateful to him for welcoming me to my first time speaking in this place on these issues of education, public services and health. It is a real honour to be asked to do this.
Today’s debate has addressed some of the reasons that brought many of us who have contributed into public life in the first place. Your Lordships could really sense that passion across the Chamber all afternoon and into the evening. My noble friend Lady Wilcox of Newport and other noble Lords, including—this is not an exclusive list by any means—my noble friends Lady Morgan, Lady Morris, Lady Andrews, Lady McIntosh, Lady Lawrence, Lady Blower and Lady Warwick, the noble Baronesses, Lady Walmsley, Lady Brinton and Lady Finlay, and the right reverend Prelate made well-informed contributions. So many women in this debate did so and it has been a pleasure to hear them all. However, they all set out the deficiencies in the Government’s plans for education, welfare, health and public services.
What we needed was a Queen’s Speech that rose to the challenge of rewarding the devotion of families, teachers, pupils, patients and carers over the pandemic. It offered none of this, just short-termism and distant promises, with no sense of the urgency or appreciation of the scale of the task that we face.
The tone of this debate has been constructive, but the unmet ambition and frustration with the Government is palpable. The noble Lord, Lord Kirkham, to be fair to him, wants to close the attainment gap and I applaud him for that. However, I gently point out that the Government’s leadership in priority areas has so far been nowhere near that implemented in the London Challenge led by, I believe, my noble friends Lady Morgan and Lady Morris, although there were no doubt many others involved. The Government could step up and deliver for areas like mine in the north-east.
As my noble friend Lady Wilcox of Newport set out so well, the Government’s legislative plan—or lack of—for our children simply does not recognise the urgency of the action that UK schools and universities need. As she said, it is only though world-class skills, training and sustained investment and by changing the way that we think about vocational training—as the noble Baroness, Lady Falkner, and my noble friends Lord Hanworth and Lord Jones said—that Britain can compete in the 2020s and 2030s. The Prime Minister’s rhetoric on lifetime skills is all very well, but the reality so far is very different, I am afraid.
All the evidence suggests that it is in a child’s earliest years that interventions make the most difference, so it is utterly damning for the Government that half of all children starting reception are deemed to be not ready to start school. We will judge the Government on their record and not on their rhetoric—inadequately small measures and token gestures, as pointed out by my noble friend Lady Morgan, and no proper recovery plan. We need sustainable policy and investment, she said, and I agree.
Even when the Educational Endowment Foundation is warning that Covid may have led to a 17% increase in the already vast educational attainment gap between disadvantaged pupils and their peers, there are no proposals to support children’s pandemic recovery. Equally astoundingly, there are no proposals to improve teaching and tackle the exodus of school staff from our classrooms.
Labour would use this opportunity to support every child’s recovery from the pandemic with new opportunities to learn, play and develop, through our children’s recovery plan. We would end the unfair tax breaks for private schools and spend the money on improving education for all our children. By delivering 6,500 new teachers and professional careers advice and guidance for every child, we would provide a brilliant education for every child to equip them with the skills they need for work and for life.
“This is an empty Bill and a discredited catch-up programme,” said my noble friend Lady Morris, calling for standards not structures. You know why the Government are doing this? Because they are out of ideas; they are tired, distracted and unable to champion the needs of our children.
We heard a thoughtful speech from the noble Lord, Lord Addington, on dyslexia and technology, so what about a Bill to look at services for children with those additional needs, to support them, their educators and their parents? New ideas, imagination and a determination to deliver excellence for all children is what we want from the Government—they would have our support—but what we have is an all but empty Bill.
On health, there is only one small Bill. After a decade of Conservative underfunding, the NHS went into the pandemic with record waiting lists and 100,000 staff vacancies. There are 6,400,000 people currently waiting for treatment and 1,600,000 million people waiting for mental health support. The Government’s response? No legislation, no new funding, no details and no timescales. A failure to act for a decade was bad enough, but a failure to act after the pandemic is nothing short of an insult and a ticking time bomb. As my noble friend Lord Young said, we need to find a way.
I should just like to mention to the Minister somebody called Ian Weir. He lived in Darlington and died when he was, I think, 43 years old from a heart condition. He had been waiting for treatment for about a year and a half and died while on a waiting list. It was his death that led the then Health Minister, Alan Milburn, to introduce national service frameworks for heart conditions to impose targets and obligations on providers. Those decisions, that energy, that commitment and that determination to do something are still saving lives to this day.
However, we are now going backwards. Female life expectancy in the north-east is getting shorter, for example. That is shameful. More shameful still, however, is the Government’s passivity in the face of this preventable disaster. As my noble friend Lord Bradley explained, the Mental Health Act has long needed an overhaul. However, as he said, we do not currently have a sustainable, long-term workforce plan, which is necessary for the reforms to work properly. The Government are silent on this critical fact, whereas we would bring in an additional 8,500 new mental health staff to treat more patients and drive down waiting lists. It should please the noble Baroness, Lady Hollins, who made a well-informed and thoughtful speech, that we would guarantee mental health treatment within a month for all who need it and place specialist mental health support in every school, resulting in over 1 million more people receiving support each year and saving money in the long run.
Nearly two years on from the Government promising, as they put it, to fix social care, all we heard in this Queen’s Speech was that
“proposals on social care reform will be brought forward.”
I should hope so but, so far, that simply is not good enough. The noble Baroness, Lady Pitkeathley, is right: we are missing an opportunity to support carers and their families. She made some practical suggestions that would help. The noble Baroness, Lady Jolly, appealed to the Government to act and to rethink how young carers are themselves cared for by local authorities and schools. Too many fall through the cracks at present. The Government could and should act.
It is clear that the Government just do not have an ambitious, coherent strategy to revitalise health, education, welfare and public services. This is a mid-term Government with a huge majority. They should be making bold, difficult choices but are simply not meeting the scale of the challenge, with the UK facing crisis upon crisis in terms of the cost of living, mental health treatment, waiting times and educational attainment. Britain deserves better. We on these Benches want to form a Government. We have the energy, ambition and creativity needed but, until that time, we will use our role as parliamentarians to probe, push and negotiate our way to the better legislative package that our public deserve.
(2 years, 9 months ago)
Lords ChamberI thank the noble and gallant Lord for his comment, but we have shown that we do not need a separate institutional treaty to work effectively with the EU on foreign policy, whether co-ordinating on sanctions, responding jointly to Russian aggression or on wider issues involving Iran. Although we have left the EU defence structures, we will continue to work closely with the EU across the common challenges that we face. We do so on a very wide range of issues, including Libya, climate change, Russia and so on, and the trade and co-operation agreement provides for future co-operation on emerging security challenges, where it is in the interests of both sides to continue to work together.
My Lords, what is the Minister doing to improve co-ordination with our EU partners on sanctions against Russia? Can he also tell us what the Government are doing now, independent of the EU, to implement long-overdue measures to prevent money laundering, including reform of Companies House, regardless of any further Russian attacks on Ukraine?
My Lords, we have cracked down on illicit finance through ground-breaking legislation in the Criminal Finances Act, and we have already published our ambitious economic crime plan. The National Crime Agency has increased investigations into corrupt elites, and the Government are reviewing all tier 1 investor visas granted before 5 April.
On the broader point that the noble Baroness raises, the UK will continue to work with the EU and other international partners to tackle shared global challenges. For example, on 2 December, alongside the US, Canada and the EU, we imposed fresh sanctions on eight Belarussian individuals responsible for repression and human rights violations. That was a consequence of co-operation with our European allies and those further afield.
(2 years, 10 months ago)
Lords ChamberI will try in due course to provide answers relating to other specialist committees, as the noble Baroness mentioned, but on fishing licences our approach has been and remains fully in line with our TCA obligations. We have said throughout the process that we have issued licences where we have received evidence of an entitlement. It is worth pointing out that the UK has issued over 1,800 licences to EU vessels seeking to fish in our waters.
My Lords, at the meeting of the Partnership Council on 9 June, sanitary and phytosanitary measures were discussed. Can the Minister confirm whether the Government intend to seek what is often called a veterinary agreement and whether there is any progress on that?
I am not able to give the noble Baroness any kind of detailed update on those discussions. I do not believe there is an update to provide, other than that those discussions continue. If there is more to provide, I will do so in writing.
(2 years, 10 months ago)
Lords ChamberThe noble Lord makes a really important point. We have always been concerned that Nord Stream 2—it is an obvious thing to say—risks entrenching European energy dependence on Russia and undermining Ukraine’s security. The noble Lord raises a broader point, and in the areas where I work in government, particularly in the department for the environment, it is not only the case that we have not lost a seat at the table by leaving the European Union; we have gained a seat at the table. In forums such as CITES, the UK is able to influence votes and actual outcomes in a way that we were never able to before, because we had to pool our voice with a whole bunch of other countries that did not always agree with us.
My Lords, there is a risk here of the Minister sounding complacent. This matters. The prosperity and security of the United Kingdom depend on us having significant diplomatic influence. Surely we must be seen to stick to our agreements. With that in mind, I encourage Ministers to resolve outstanding issues with the EU regarding the Northern Ireland protocol as a matter of urgency. Does the Minister agree that Russia’s hostile activity demonstrates our need to facilitate close security partnerships with the EU and our European partners as well as NATO?
I certainly do not intend to sound complacent. I simply push back on the idea that the UK has lost influence. All the evidence over the last two years shows that we have extraordinary influence around the world, disproportionate to the size of our country and even to the size of our economy—notwithstanding that we are the fifth biggest economy in the world. However, the noble Baroness is right: post-Brexit relations with the EU remain heavily influenced by the resolution of outstanding exit priorities, principally the Northern Ireland protocol, where talks need to proceed with renewed urgency this month. I have every hope that we will see success at the end of those talks.