EU Exit: Negotiations and the Joint Committee

Baroness Ludford Excerpts

Wednesday 21st October 2020 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

I thank the Minister for returning to the Dispatch Box—apparently unbruised by the government defeat of 226—to defend the Statement and Mr Gove’s words in the other place: that, in any negotiation, both sides have to honour their commitments. Had the Prime Minister done so in respect of the withdrawal agreement, he may not have had to face that defeat.

Yesterday’s headlines were, “Talks break down”. As my right honourable friend Keir Starmer said:

“The collapse of these talks is a sign of Government failure.”


He was in fact responding to the Manchester talks, but it is the story of this Government, who could not negotiate their way out of a paper bag. They boast, threaten and bluster, but fail to reach a consensus with their counterparts. They set deadlines: a deal by July, then September, then mid-October—all missed. They criticise the EU for sticking to its negotiating mandate, but meanwhile boast that they will not move from their own negotiating objectives. It seems it is only the other side, and not ours, that has to move. They criticise the other side for not discussing legal texts, despite the fact that the EU published its 441-page legal text in March but it took until mid-May for us to do the same. Even then, the UK blocked early talks on security co-operation—security: the most important issue on which citizens rely on their Government.

The former Home Secretary and Prime Minister hit the nail on the head on Monday, pointing out that security was not even in the Statement and that, without a deal, law enforcement agencies would have no access to vital databases. I cannot re-enact her mocking response to the extraordinary answer that Mr Gove gave, but I will repeat his words and leave it to your Lordships’ imagination. He claimed that

“we can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside.”—[Official Report, Commons, 19/10/20; col. 761.]

That hardly tallies with the words of the noble Lord, Lord Anderson, who knows a thing or two about security:

“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope … Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”


Closer to home, Naomi Long, the Northern Ireland Security Minister, stressed the importance of a security partnership with the EU to stop the politicisation of extradition in Northern Ireland, as was the case before the EU arrest warrant.

Mr Gove’s view that we could not possibly, as the price for using EU security systems, also accept its court on the issue of how we use that data seems remarkable for its short-sightedness. Perhaps the Minister can update the House on progress towards a security and data-sharing agreement.

The Government have taken to saying that we had been offered a Canada-style agreement but it is no longer available. In fact, that was never going to happen. The Commission’s February slide on “Geography and trade intensity” never suggested that a carbon copy of CETA was on offer, simply that the same legal form as the FTAs with Canada and South Korea could be used. What is more, the Canada deal contains level playing field measures of the sort the Government now say they will never accept. If they are now willing to go the Canada way, will they also honour the political declaration that the Prime Minister signed and accept a level playing field?

This trade and security deal is too serious for playing games. Last week, 70 business groups, with more than 7 million employees, urged the Government to return to the table to strike a deal. These industries—automotive, aviation, chemicals, farming, pharmaceuticals, tech and financial services—are desperate for their futures and urge a compromise, as this matters greatly for jobs and livelihoods. As they say:

“With compromise and tenacity, a deal can be done.”


Sadly, yesterday’s perfunctory call with Boris Johnson left them disappointed. Some described it as unbelievably disrespectful to the concerns of business. The Prime Minister apparently asked companies to “end the apathy” and get ready, while Mr Gove described our departure as like moving house—a bit of disruption. Of course, it will not be Mr Gove or other Government Ministers who have to cope with a bit of disruption. There will be people losing jobs, consumers paying more for their food, Kent and Anglesey residents finding their roads blocked by lorries and their verges taken up by portaloos, and citizens’ rights at risk. Small business groups have pressed for transition vouchers to pay for extra preparation. I gather that Mr Gove said he would take that back to the Treasury, so perhaps we could know the outcome of that request.

At least they got a meeting. The SMMT did not even get its letter answered. On Monday, there had been no response to its 1 October letter, so perhaps we could be told whether it has now been answered. Meanwhile, the country’s leading transporter of diesel and petrol faces a 4% tariff on the fuel it imports if we do not get a deal. This will affect the industry itself, but it could also mean increased prices at the pumps, possibly up to 3p a litre. The knock-on effects on industry are evident.

Mr Gove was asked by my honourable friend in the other place how much of the £50 million for customs intermediaries had now been drawn down and how many customs agents had been trained. Unfortunately, she got no reply. So, we ask again: how many of the 50,000 will be in place on 1 January?

Finally, what is the status of the Goods Vehicle Movement Service, given that work on its IT system had not even started a few short months ago? The Government stress that businesses need to prepare, but seem unable to demonstrate that they have done their own work. Perhaps we can have an update on that as well.

[Baroness Ludford (LD)]

My Lords, the Chancellor of the Duchy of Lancaster claimed that the UK was “increasingly well prepared” for what he called

“leaving the EU on Australian terms”.—[Official Report, Commons, 19/10/20; col. 756.]

Putting aside the fact that “Australian terms” is just a euphemism for no deal, whereby the UK trades on WTO terms and our exports face tariffs and quotas, the cries of pain from business are audible for all to hear. They are far from having the “high hearts and complete confidence” at the prospect of no deal that the Prime Minister expressed—or indeed at the prospect of the skinny deal that represents the height of government ambition.

The Government have launched a “Time is running out” campaign urging businesses to get ready. But get ready for what? The Government must acknowledge that they are the ones keeping businesses in the dark.

The Road Haulage Association described a meeting with Michael Gove about post-Brexit arrangements last month as “a washout” in which they got “no clarity” on how border checks will operate when the transition period ends. In an interview on Monday, its managing director of policy and public affairs, Rod McKenzie, responding to Mr Gove’s claims, in a Statement, of

“putting in place new IT systems to help goods flow across borders”

and

“giving business access to customs professionals,”—[Official Report, Commons, 19/10/20; col. 757.]

said: 

“It’s a bit of a cheek to say that ... It would be fine to accuse people of having their head in the sand and not having done anything if we knew what we had to do. The problem is the Government has spent not just months, but years, failing to tell the businesses that need to make this work what exactly they have to do…they haven’t prepared the IT systems that will make this work … and they haven’t hired enough customs agents to plough through the mountain of red tape that will be created by this new system.’


Then there is business as a whole. The BBC’s business editor, Simon Jack, tweeted yesterday about how business leaders had described a call with the Prime Minister and Mr Gove as “terrible,”

“unbelievably disrespectful to the concerns of business”

and “more of a lecture”, with the Prime Minister accusing them of “too much apathy”.

There is still no clarity as to what the trading relationship will be. The Government need to acknowledge that business does not have the certainty that it needs. Will the Minster retract the absurd claims that businesses have their head in the sand or are displaying apathy in preparing for Brexit? Will he accept that the Government’s current plan is very far from being “oven ready”, as claimed? 

Attentive listeners will detect a bit of a pattern here. It is not just the EU that is getting accused by this Government or their acolytes of being in the wrong. It is business, experts, devolved Governments, mayors, judges, lawyers, the Church, the Civil Service and Parliament—especially, of course, the House of Lords. Gibraltar, Jersey and the Falklands are not exactly brimming with happiness and contentment, either. Perhaps, the Government should examine the mote in their own eye, rather than try to bully, bamboozle and blame everyone else. Their negotiating style has the effect of alienating almost every group they encounter, except, perhaps, rich Tory donors, including Russian ones. 

On security, Mr Gove made the truly astonishing claim to the other place on Monday in response to former Prime Minister Theresa May that security would be better outside the EU. Mrs May was seen to mouth “What?” in response to that astonishing and hopelessly untrue claim. The noble Lord, Lord Ricketts, tweeted yesterday:

“If UK loses all access to EU systems from 1 Jan, as looks likely, there is no good Plan B.”


The noble Lord, Lord Anderson of Ipswich, said: 

“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope. Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”


I remind the Minister that these people are experts. Mrs May was the Home Secretary for several years who masterminded the process in 2014 whereby the UK opted to stay in all the important EU law enforcement measures. The noble Lord, Lord Ricketts, is a former National Security Adviser; and the noble Lord, Lord Anderson, is a former independent reviewer of terrorism legislation. 

If the Minister wants to tell me now what precisely is the 

“variety of methods and arrangements”

whereby the UK

“can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside,”

and which

“can intensify the security that we give to the British people,”—[Official Report, Commons, 19/10/20; col. 761.]

then I am all agog to hear what those measures are. Otherwise, I shall continue to think it is the fantasy it appears to be. The Government need to get real, stop blaming everyone but themselves, stop talking pie in the sky and get on with the negotiations like an adult, not a tiresome toddler. 

How does Mr Gove’s claim, in the Statement, of

“the UK’s commitment to upholding all our obligations under both the withdrawal agreement and the Belfast agreement”—[Official Report, Commons, 19/10/20; col. 757.]

sit with the Government’s efforts to get the power to abjure them in the Internal Market Bill, with which this House expressed its severe displeasure yesterday?