Brexit: The Crown Dependencies (European Union Committee Report)

Baroness Goldie Excerpts

Tuesday 23rd January 2018 Lords Chamber

[Baroness Goldie (Con)]

My Lords, it is a privilege to respond to the debate today on the Select Committee’s report, Brexit: the Crown Dependencies. I put on record my appreciation of the work of the European Union Committee, chaired by the noble Lord, Lord Boswell. It is very good to see him back among us in svelte form—I envy him greatly in his new shape. Perhaps I may deal first with the important matter of the noble Lord’s letter of 22 November 2017, which was raised by him and a number of other noble Lords. I regret the delay in responding, and I apologise for that. I can assure him that he will receive a response to his letter of 22 November. The phrasing I have been given is “with the utmost celerity and alacrity”. If I remember my English classes at Greenock Academy correctly, that is going to be very soon. I am sure the noble Lord will let me know if it does not materialise in the very near future.

The committee’s report represents a thoughtful analysis of the implications for the Isle of Man and for the Bailiwicks of Guernsey and Jersey of the UK’s decision to leave the European Union. The committee’s expertise and strength of analysis is clearly demonstrated in this report. The Government recognise the implications of EU exit for the Crown dependencies and we remain fully committed to seeking the best possible deal for all jurisdictions. We will ensure that we take full account of the Crown dependencies’ interests throughout the negotiations and beyond. That relationship is not only an ancient and enduring one, as my noble friend Lord Selkirk said, but an intimate one. It is a very important one, and in that respect it is unique.

Ministers and officials have engaged regularly and positively with the Crown dependencies to ensure that their priorities and interests are accounted for and reflected in the UK’s negotiating positions. Many of the points raised by this report about our future partnership with the EU and the priorities of the Crown dependencies relate directly to the second phase of negotiations, which we are currently embarking upon. These are the most important negotiations our country faces. Reaching a new partnership with the EU is in the interests of both sides and, as such, I hope that noble Lords will understand that I am unable to go into great detail on some areas at this stage.

I will now seek to cover some of the issues covered in this evening’s debate. The important issue of engagement with the Crown dependencies arose and I was asked how the Government are effecting that engagement. My honourable friend Robin Walker, the Minister, leads on engagement with the overseas territories and the Crown dependencies at the Department for Exiting the European Union. We remain fully committed to engaging with the Crown dependencies as we prepare to leave the EU. My honourable friend chairs quarterly meetings with other departmental officials and the Chief Ministers of the Crown dependencies, the most recent of which sat in November last year. I can confirm that these discussions have been constructive and positive, and I look forward to them continuing as we enter the next phase of the exit process.

In addition—this is important—these meetings have been supported by a series of technical round tables which bring together UK government experts and representatives of the Crown dependencies with the aim of developing a full and detailed understanding of their interests and objectives on specific issues and what work they need to undertake in order to be ready for exit. The Chief Ministers have expressed satisfaction with the Government’s engagement. The noble Lord, Lord Shutt, was sceptical, but the opinion of the Chief Ministers is important. They know that we are negotiating for the Crown dependencies as we are negotiating for all other parts of the United Kingdom.

The other important issue that arose tonight, to which a number of noble Lords referred, was protecting relationships with the Crown dependencies. The noble Baroness, Lady Pitkeathley—I was interested to learn that she is a Guernsey girl—observed that Guernsey tomatoes are very good. They are very good, but so are Scottish ones, which is not to be forgotten. The debate has raised important points about how we protect our relationship with the Crown dependencies. It is extremely important that our exit does not adversely affect the close constitutional, economic and cultural relationship. This is a point rightly emphasised in the report. Indeed, the UK shares the primary aim of the Crown dependencies in exit to protect that precious constitutional relationship. It is valued, historical and special.

A number of noble Lords asked how we represent the Crown dependencies in negotiations and how we take full account of their priority interests in that process. The noble Lord, Lord Boswell, my noble friend Lord Northbrook and the noble Earl, Lord Kinnoull, all referred to this. The Crown dependencies have identified six priority areas where the UK’s exit from the EU is likely to have the greatest implications for their jurisdictions. They are: justice, security and migration; agriculture and fisheries; customs; financial services; transport; and the digital single market. We are committed to remaining engaged with the Crown dependencies on these areas.

The noble Lords, Lord Beith and Lord Teverson, and the noble Baroness, Lady Hayter, raised the common travel area. I confirm that in relation to the Crown dependencies, we are committed to protecting it and the co-operation on immigration that underpins it. I think that was the point the noble Baroness raised.

I think it was the noble Lord, Lord Teverson, who asked whether the Channel Islands set their own quotas for fisheries. The close co-operation between Defra and the Crown dependencies continues at the officials level of round-table discussions. That means that the distinct fisheries concerns of the Crown dependencies will be taken into account in the fisheries Bill that we will be introducing. Engagement on these priorities is led by the relevant departments with senior officials engaging regularly through round-table meetings with Crown dependency officials in order better to understand their interests and objectives in each area.

These round tables also have an important role in sharing information on operational readiness planning —an aspect alluded to by a number of your Lordships—so that the UK and Crown dependencies can co-operate effectively in preparing for the practical changes which the UK’s withdrawal from the EU will have for them. I think the noble Lord, Lord Boswell, my noble friend Lord Northbrook, and the noble Baroness, Lady Pitkeathley, all raised this issue. I confirm that this preparation includes planning for any transition period.

The future partnership has yet to be negotiated, but the Government set out their plans for the partnership in position papers in August and September last year. We continue to engage with the Crown dependencies to ensure that their interests are taken into our work on the future partnership. On the implementation period, I am pleased to confirm that officials have been keeping key officials from all the CDs informed, including as recently as last week.

The noble Earl, Lord Kinnoull, and my noble friend Lord Selkirk reminded us of the important status of the Crown dependencies as EU co-operative jurisdictions, which is a very significant matter. It is certainly relevant to these negotiations and can only help them. The noble Lord, Lord Teverson, raised financial services and equivalence. I cannot give a specific response to that, but the financial services sector is very important for the UK and the Crown dependencies, and that has all formed part of the negotiations.

A number of your Lordships referred to what opportunities would exist for the Crown dependencies post exit. We are taking advantage of all opportunities available to us to ensure that Britain becomes a global leader in free trade once we leave the EU. I say to the noble Lord, Lord Boswell, my noble friend Lord Northbrook, the noble Earl, Lord Kinnoull, and the noble Baroness, Lady Hayter, that the Government are committed to securing continuity in the effect of existing EU free trade agreements and other EU preferential arrangements as we leave the EU.

I can say to the noble Earl, Lord Kinnoull, that the UK is a full and founding member of the WTO and has been since 1884. I did not know that, so I have learned something—good heavens, it is a venerable institution. We fully recognise the desire of the Bailiwicks of Guernsey and Jersey to have the UK’s membership extend to them, and we have been working closely with them to ensure that they are WTO-compliant. We will obviously take into account the views of the Crown dependencies as we develop our trade policy, including their priorities for future trade agreements.

I think my noble friend Lord Northbrook raised a few issues about customs matters. We are working closely on those. A series of technical round tables has been held between HMRC and the Treasury to discuss them, and the Government have also taken steps to ensure that we have relevant legislation in place, with the inclusion of provisions in the Taxation (Cross-border Trade) Bill.

In conclusion, we remain fully committed to getting the best possible deal in negotiations on Brexit, not just for the United Kingdom but for all British jurisdictions, including the Crown dependencies. Our ongoing, regular engagement at both ministerial and official levels demonstrates this. We remain fully committed to continuing to work closely with the Governments of the Crown dependencies to ensure that their priorities are taken into account throughout the exit process and beyond.

I am very grateful to all noble Lords for their contributions over the course of a wide-ranging and informative debate. The committee’s report has been a most useful contribution to that debate, raising important issues. It is vital that they remain on the radar screen and that the Government are mindful of them. I am sure that this House will continue to play a valuable role as the negotiations proceed and has the capacity to contribute to this vital discussion as we look ahead to a new future for this country. I know that these contributions will help in securing a deal that works for everyone. Finally, I once again thank the noble Lord, Lord Boswell, and his committee for their very helpful work and thank all of your Lordships who participated in the debate this evening.

House adjourned at 7.44 pm.