EU: Future Relationship

Baroness Hayter of Kentish Town Excerpts

Wednesday 23rd September 2020 Grand Committee

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I thank the Minister for his lessons for life at the beginning and for his update. However, I am particularly pleased that the wording that he chose for the debate is about the Government’s approach to the talks, given how very sadly the Government have managed to undermine trust—the trust that guarantees that “my word is my bond”. Well beyond our relationship with the EU, these tactics will affect our international relations beyond trade to “diplomacy and integrity”, in the words of our DPRR Committee. How the UK is seen globally, and whether we respect international law, affects our credibility, our moral authority and how other countries behave. It will also affect how Parliament is seen. As my PhD supervisor, and renowned Westminster watcher, the noble Lord, Lord Hennessey, mused to me, “All these years I’ve naively assumed that Parliament exists to make laws, not break them.”

Today, I want to touch on four points: obedience to the rule of law; state aid; UK citizens; and devolution. As Mrs May, other former Prime Ministers and Conservative Party leaders have stressed, disregard for the rule of law undermines trust in us as a nation, with the Government’s own chilling words, to

“disapply international and domestic law”.

To the outside world, renouncing of established international law or a treaty matters for the future. No. 10’s statement that

“unless the EU agree to each of the UK’s demands in the joint committee, the UK will breach the withdrawal agreement,”

will be quoted around the world, to the detriment of a rules-based international order. The Prime Minister says he will renege on the very detail he himself signed, by removing checks from the GB/NI border if no deal is reached, but why did he not see that that is what he signed up to?

Late last year, the Prime Minister told firms that they could put forms “in the bin” because they would not be needed. We told him checks would be needed. Northern Ireland politicians told him. The Road Haulage Association told him. As we have heard from the Minister, the Trader Support Service has been set up to help this. Over £500 million has been allocated to the system for moving goods into Northern Ireland, as they will need customs declarations—indeed, Fujitsu has won the contract to help with this. His own Cabinet Office wrote to the Northern Ireland Executive about new border posts at ports in Belfast, Warrenpoint and Larne, for checks on agri-food. How come the Prime Minister professes not to know this and moved a Bill giving Ministers power to disapply Article 10 of the protocol unilaterally, by regulation, breaching Article 4 of the withdrawal agreement?

Foreign Governments, with whom we will need to negotiate, hear Mr Johnson threaten to break the withdrawal agreement if he does not get his own way—a breach of the UK’s commitment, in Article 5, to implement it

“in full mutual respect and good faith”.

Those foreign Governments witness our Government unpicking their own “oven-ready” deal, jeopardising trust in our willingness to keep to the rules and keep our word. What does this do to the trust that we will need when we negotiate around the world?

Along with the Minister, we want a deal with the EU. The City of London Corporation stresses the need for a positive relationship for the sake of households and businesses, wanting close regulatory and supervisory co-operation to make a success of our relationship. Business wants a deal, and at speed, as its needs certainty and time to adjust. Siemens needs to be able to work closely with the EU for its future prosperity and for jobs here. PwC and others urge a deal, not least for our SMEs, which are woefully ill-equipped at the moment for a no-deal outcome. The Food and Drink Federation is aghast at the impact of no-deal procedures on its imports and exports, possibly in 100 days’ time, giving no time for adjustments. It is worse for some sectors—for the organic sector, for example, where, if mutual recognition of regulation is not sorted, it might not be able to sell into Northern Ireland, let alone the rest of the EU.

The economy is already in trouble, so our EU negotiations need to help, not hinder. We need a good deal, tariff-free trade, consumer protection for goods imported from the EU, and no two-day delays and the major back-ups that the Government anticipate. Today, we hear that they are even trying to put the blame on hauliers rather than on their own negotiating failure. Why are the Government willing to sacrifice a good deal, which I and others think is already there and ready to be done, as well as our reputation, on the altar of being able to write our own state aid rules and move away from a level playing field?

On state aid, it is hard to understand why a Government, unwilling to use the freedoms they already have over state aid, would risk a deal for the ability to do more. As it is, the Japan trade deal commits the UK to stricter state aid curbs than those being discussed with the EU. If this is all about tech companies, have not the Government noticed that Silicon Valley did not grow on government handouts? It is the same across the piece. Whether in our negotiations with the USA or any other country, the same questions will arise on environmental, worker, safety or consumer standards and over dispute resolution mechanisms or redress. That is the meat of trade deals.

Thirdly, what does the Government’s approach to the talks mean for our citizens? Those living in the EU and following this delayed “I won’t move” process worry about their status. As Ruth Woodhouse, a Brit living in Spain wrote to me from Malaga:

“UK citizens residing in the EU thought we had secured a relatively good, guaranteed level of protection in the withdrawal deal. However, if the government can tear up the rule book, clearly anything can be changed on a whim and nothing is guaranteed. I fear that our hard-fought rights could be just as easily be removed.”


Yesterday, we learned that thousands of Britons living in the EU were told their UK bank accounts will be closed, with Lloyds, Barclays and others taking action due to the lack of a post-Brexit trade deal. It is no easier for employees, with JP Morgan sending staff off to other EU capitals, due to lack of confidence that an agreement will arise on services. Jobs, money and people’s lives are all at risk because the Government are failing to negotiate.

Without a deal, there will be trouble for travellers, whether by air or sea. When the police imposed full border checks at channel ports last week—nothing to do with Brexit—the main road to London was snarled up within hours, with trucks parked up on the M20 motorway, a reminder of how any delay quickly causes chaos and will not solved by lorry parks across Kent or, indeed, around Holyhead.

Finally, the UK’s approach to the talks has challenged the devolution settlements, by excluding the devolved Governments from its thinking and talks. We see it in the internal market Bill described by the Welsh Government as,

“an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions.”

I remind the Minister that it is not just the referendum result that should be recognised but those votes for devolution. Indeed, the treatment of the Welsh Government led to the resignation of the Conservative MS, David Melding.

--- Later in debate ---

[Baroness Hayter of Kentish Town (Lab)]

My Lords, just as the Welsh Government felt offended because they were not consulted on the internal markets Bill, and because the powers that it gave to the Government took away from the devolution settlement, there is a similar feeling about these talks, because they have been neither fully involved nor consulted in the Government’s discussions with the EU. Do the Government not see that every time they upset the devolved Administrations, that challenges the very future of the union?

The economic disruption of leaving the transitional period without an agreement, or indeed with a deal which falls short of the Government’s promises, would worsen the hit already caused to the country by Covid-19. We have left the EU but it remains our closest neighbour and most important trading partner. We still share a continent in which security and judicial co-operation help to keep all our people safe. The Government’s approach to negotiations is weakening rather than strengthening our ties and mutual trust, and is therefore to be regretted.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I call the next speaker, the noble Lord, Lord Wallace of Saltaire. Lord Wallace? We might have a chance to come back to him later. In the meantime, I call the noble Lord, Lord Kerr of Kinlochard. Lord Kerr? Oh, there are some technical difficulties. We will adjourn until they are sorted out.