Services of Lawyers and Lawyer’s Practice (Revocation etc.) (EU Exit) Regulations 2019

Baroness Kingsmill Excerpts

Tuesday 15th January 2019 Lords Chamber

[Lord Keen of Elie]

In the event of us exiting without any deal, there will be no reciprocal rights—which was one reason why, as I indicated, these regulations are required. They are necessary in order that we can establish a position in which all third-party country lawyers will be on the same standing in the absence of a free trade agreement or other agreement with a third-party country. There will be no reciprocity—that will be a matter for the relevant EU country to consider—but clearly it is a matter that we would wish to address in future negotiations consequent on our exit from the European Union. This is dealing with the position in the United Kingdom in light of the existing regulatory regime under EU law. Clearly, and quite patently, you could not address the question of how the EU 27 are going to treat our lawyers going forward.

[Baroness Kingsmill (Lab)]

Is it correct that this applies only in the event of a no-deal situation?

[Lord Keen of Elie]

I have already said that.

[Baroness Kingsmill]

It does not say that on the face of the regulations: that is why I was checking.

[Lord Keen of Elie]

That is why I said it in opening—but, if the noble Baroness wishes, I can repeat it.

[Baroness Kingsmill]

I just wondered if it might be helpful if it were on the face of the regulations, because this situation keeps arising on many of the other ones as well. The problem is that these things have a tendency to drift on, and in the event that there was not a no deal but there was some other kind of deal, would the regulations that we are considering at the moment have some kind of half-life or a continued life of some kind or another? That is why I put the question: I am concerned that in this and in other statutory instruments that I have been considering, there is nothing on the face of the instrument that actually says that this will fall by the wayside in the event that there is any kind of deal other than a no deal.

[Lord Keen of Elie]

The terms of the instrument make it perfectly clear that it is to apply in the absence of a deal. My department is certainly well aware of the scope and application of the instrument, which is why I made it clear in opening that this instrument will apply in the event of there being no deal. However, in the event that there is a withdrawal agreement of some kind, clearly that would not be a situation in which the instrument would be required.

--- Later in debate ---

[Lord Keen of Elie]

My Lords, in the event that we have a deal, we will repeal this instrument. It will have no further purpose in those circumstances. This is to address the issue of there being no deal—I emphasise that again.

[Baroness Kingsmill]

Perhaps the Minister can clarify: it will have to be repealed? We will have to go through all of this again?

[Lord Keen of Elie]

We will have to address those instruments that are in force which no longer have an application in the event of a withdrawal agreement being entered into.

I referred to the arrangements that would be made for EU and EFTA-qualified lawyers because these arrangements include not only EU 27 lawyers but EFTA and Swiss lawyers, who are subject to similar arrangements.

In the event that the UK leaves the EU without a deal, as I said, we will be governed by the GATS provisions. Therefore, we will have to comply with them and we need to address that issue. The draft instrument will also provide, as the noble and learned Lord, Lord Hope, observed, a transition period to allow registered European lawyers time to comply with the new regulatory position. We consider that that will not be inconsistent with the GATS regime. As I said, the transition period will run until 31 December 2020 and will allow registered European lawyers and those in the process of achieving that status by exit day to practise in the same way as they do now but to use the time to adjust their position. This arrangement will also allow EU and EFTA lawyers with ownership interests in regulated legal businesses in England and Wales or Northern Ireland to adjust their regulatory status.

As I have set out, there will be a deficiency in retained EU law which implements the two lawyers directives, due to a lack of reciprocity, if we leave the EU without a deal. It is the purpose of this instrument to address that deficiency and to ensure that by doing so we uphold our international obligations in this context. I emphasise the point that was brought out by the noble Baroness, Lady McIntosh. It does not—indeed, it cannot—address the issue of reciprocal rights for UK lawyers in the EU 27. It is in these circumstances that I beg to move.