Brexit: Release of Impact Assessments

Baroness Ludford Excerpts

Tuesday 28th November 2017 Lords Chamber

[Lord Callanan]

I have not read all the reports, although I have read very many of them. These documents are constantly being updated and collated. New information is coming to light and new facts are emerging, all of which inform our negotiating position. The Government have been very clear that we are leaving the customs union and the single market. I believe that this will be firmly in the country’s best interests.

[Baroness Ludford (LD)]

My Lords, are this Government not a serial offender when it comes to the arrogance of their executive power? The Brexit pledges were all about taking back control and Westminster sovereignty, but Parliament has been refused a decision on Article 50. There has been an attempted power grab in the withdrawal Bill and now there is this.

In her speech to the Conservative Party conference in October last year, the Prime Minister gave many pledges about change, transparency and honesty and how she had heard the call of millions of people. Is it not time to stop hiding from the British people and to stop keeping them in the dark about the Government’s extreme Brexit plans? Should these reports not be published in full, rather than going through a Whitehall whitewash? Why are the Government trying to spare their own blushes and hide from the people the disaster that Brexit will mean for their jobs, their rights and the environment?

[Lord Callanan]

We are not hiding behind any documents. We have provided an unprecedented level of information to the committee. We have been as open and transparent as possible, subject only to preserving our negotiating position. With the permission of the House, I should like to answer a question which I was not asked, but which I expected to be asked by the noble Baronesses—will the House have access to this material? The answer is yes.

Brexit: Data Transfer

Baroness Ludford Excerpts

Thursday 16th November 2017 Lords Chamber

Tabled by

[Baroness Ludford]

To ask Her Majesty’s Government what discussions they have held with the European Commission on an adequacy decision for data transfers between the United Kingdom and the European Union after Brexit.

[Lord Paddick (LD)]

My Lords, on behalf of my noble friend Lady Ludford, and at her request, I beg leave to ask the Question standing in her name on the Order Paper.

European Union

Baroness Ludford Excerpts

Monday 6th November 2017 Lords Chamber

[Lord Callanan]

I am sure that the noble Lord noticed that we had a referendum on the subject.

[Baroness Ludford (LD)]

My Lords, can the Minister assure us that, as the EU reforms and changes, the Government will ensure that the United Kingdom plays to its strengths in Europe, such as in the single market, of which Mrs Thatcher was the architect, and in justice, security and defence, rather than running away from these major assets that we contribute to the EU?

[Lord Callanan]

On the subject of defence and security, we have proposed a bold new strategic partnership with the EU, including a comprehensive agreement on security, law enforcement and criminal justice co-operation.

European Union: Final Withdrawal Agreement

Baroness Ludford Excerpts

Thursday 26th October 2017 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, I very much remember the contributions of the noble Lord, Lord Pannick, to our debates on the Article 50 Act. As I just explained, a commitment given by a Minister at the Dispatch Box is and remains binding. The noble Lord refers to legislation that is currently in another place and will proceed here. Clearly it is a matter for discussions in that House to proceed, as they may do in Committee and beyond, but the position is clear: there is no confusion about the meaningful votes being offered. When my right honourable friend the Secretary of State answered questions on hypothetical issues of what happens in negotiations in the European Union, he gave an accurate answer. He made it clear that we expect to have an agreement by October next year, because that is what the European Union wants. It is what all of us need, so that not only we but other members of the European Union can properly consider their views on that agreement.

[Baroness Ludford (LD)]

My Lords, we are discovering that the assertion of taking back control of parliamentary sovereignty at Westminster was a myth in the mouth of the Brexiteers, but is it not right that the final say must surely rest with the voters? As the real facts about Brexit emerge, the public should have the right to reflect and think again about whether Brexit suits them. That would truly be respecting the will of the people. A refusal to give the voters a final say would be deeply undemocratic. Will the Government now pledge that they will respect the voters and give the final say to the people?

[Baroness Anelay of St Johns]

We respect entirely that the democratic process means that in a referendum people express their view. More than 1 million more people voted to leave than to remain. We gave the undertaking that we would respect the result of that referendum and, as I gently reminded the noble Baroness the other week, the fact is that the only major party to stand at the last election on the basis of having a second referendum suffered the penalty of almost total loss.

Brexit: Financial Settlement

Baroness Ludford Excerpts

Thursday 12th October 2017 Lords Chamber

[Baroness Anelay of St Johns]

What a very interesting idea my noble friend puts forward—I hope the EU Commission is listening very carefully. However, he makes the serious point. When we issued the Statement back in July, we made it clear that we will honour our obligations, both legal and moral, to the European Union but also that that is reciprocal. There are obligations from the EU to us, including the valuation of assets. It is a technical matter and part of the discussions. I urge the Commission to get on with the work of carrying out that valuation and considering a fair apportionment of the amount.

[Baroness Ludford (LD)]

My Lords, the wording of the Florence speech may have been seen as helpful here, but I fear that in Brussels and Berlin it was seen as opaque in its real commitments to the budget hole and obligations such as pensions—where I declare an interest—and future relations. If we are hoping that the European Council next week will at least widen a little the mandate of Mr Barnier to prepare for phase 2, would it not be wise to put some figures on those sums?

[Baroness Anelay of St Johns]

My Lords, this is a technical matter which will decide the future not only of this country but the rest of Europe. One does not go into that kind of negotiation by just opening the doors of the Treasury and offering a certain number of millions or billions of pounds. What we will do is look very carefully at the paper put forward by the Commission during the summer, in which it set out the list of treaties and the clauses of those treaties and regulations that it says form the legal basis of the money that should be paid by this country. We want to be able to face the British people and say: this is our obligation, this is why we agreed to pay it, and we can justify every part of that money.

Brexit

Baroness Ludford Excerpts

Monday 9th October 2017 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, when we triggered Article 50 it was at a time when we had already heard extensive analysis of a range of issues that we knew would be the subject of discussion in reaching an agreement on our withdrawal from the European Union. That includes, as I have mentioned at the Dispatch Box in the past, an analysis of more than 50 sectors of the economy. An extraordinary amount of detailed work has been carried out, which is why we have been able to publish a raft of papers this summer.

[Baroness Ludford (LD)]

My Lords, the Prime Minister allowed herself to think again about holding an early general election. Why will she therefore not allow people to think again about the advisability of Brexit once they know the facts?

[Baroness Anelay of St Johns]

My Lords, I remind the noble Baroness, who is also a friend, that her party, which stood for that in the last election, got hammered.

Brexit: Negotiations

Baroness Ludford Excerpts

Wednesday 13th September 2017 Lords Chamber

[Baroness Anelay of St Johns]

My Lords, I was alluding to the fact that there are indeed obligations from the EU as well as obligations from the UK to the EU. As part of that process it will be important to have a valuation of assets.

[Baroness Ludford (LD)]

My Lords, in the debate last night, one of the most interesting contributions was from the noble Baroness’s predecessor as Minister, the noble Lord, Lord Bridges of Headley. He said:

“We must be honest about the task we face—its complexity and scale. We must be honest about the need to compromise and about the lack of time that we … have to come to an agreement on our withdrawal”.—[Official Report, 12/9/17; col. 2431.]


Are the Government going to take his advice?

[Baroness Anelay of St Johns]

My Lords, we listened to his advice when he was a Minister; we still listen to it now.

UK and EU Relations

Baroness Ludford Excerpts

Tuesday 12th September 2017 Lords Chamber

[Lord Cavendish of Furness (Con)]

My Lords, how hugely refreshing to follow a speech which is so constructive and given with such authority, hoping to make these negotiations work. I congratulate the Government on their use of the long recess to provide us with a large folder of position papers, and I thank my noble friend the Minister for giving the House the opportunity to debate them. I also thank her for introducing the debate with her customary clarity.

I have tried to read all the position papers as they appeared and, as a result, I feel that I have gained a clearer view of what the Government have in mind in the different areas under discussion. That surely is what they are intended for. They are not dogmatic and frequently offer alternative approaches to problems. They have formed the basis of intelligent debate in various quarters, not least among a number of your Lordships. I have also read them in conjunction with the European Council’s document on guidelines for Brexit which, aside from the usual self-promoting claims that one might want to challenge, held no real surprises. But what I have found striking is how sparse the EU negotiator’s response is. I can understand that the EU will indeed miss our financial contribution, but I would have thought that there were aspects of Brexit, other than money, and especially those set out in the position papers, which merited a greater reaction than has so far been forthcoming.

Much of the criticism that I have seen in the press and which has been articulated this afternoon has been, in my view, largely synthetic. We have heard that there has been both too much detail and too little detail. More broadly, I rather miss the days when convention held that, in international affairs, criticism of one’s own country and Government was measured. Sometimes I hear and read things that suggest there are elements in Britain which appear not to have their country’s interests at heart. Their disappointment at the outcome of the referendum is manifested in an apparent wish for the negotiations to stall or fail.

The message of the position papers suggests to me that Ministers recognise that Brexit has implications for all our EU partners as well as ourselves, and that we stand ready to make the process as painless as possible.

On many occasions since the referendum result, I have paused to reflect on how common ground might be found between we leavers and the almost, but not quite, equal number of my fellow citizens who took the opposite view. Although I continue to rejoice at the decision that was reached and to feel a free man at last, I do not understand the rationale of those who wish to retain membership of the EU. It still eludes me, but I know that I need to keep in mind that 48% of voters represents a very substantial minority. It is for those of us who won by a not-great margin to go on listening to those we disagree with and respect their feelings.

Conversely, the 48% should not seek to derail the decision reached by the British people. As for those who seek to abort the whole process, I invite them to reflect on what might be the reaction. They might also give some thought to the kind of terms Britain would be offered if we crawled back in supplicant mode. Like my noble friend Lord Ridley, I await patiently and with interest for the Labour Party to find a settled position on Brexit. There is little to say until it does. The Liberal Democrats were the only party at the last general election that campaigned to reverse the referendum decision. Voters hardly flocked to support that policy, and unless they are listening only to themselves, one might think that some restraint would be appropriate when the repeal Bill arrives in this House.

[Baroness Ludford (LD)]

I thank the noble Lord for permitting me to intervene. For his benefit, I will just clarify that we did not seek to reverse the referendum. What we are saying is that the referendum last year was rather like buying a house subject to a survey and that once the details are known, there should be a referendum on the concrete details of Brexit. That is not a reversal or a second referendum.

[Lord Cavendish of Furness]

I will read very carefully what the noble Baroness has said and I hope I will be clearer.

I will now briefly look to the future, because I believe there is a vision for this country behind which we could reunite and thrive—the vision of global free trade. There are people I know devoting energy and talent beyond the minutiae of current negotiations who see in the ancient notion of free trade a means to worldwide prosperity and peace. When we leave the European Union, we will also leave behind a protectionist organisation, whose policies harm the poorest of the world. I say to the noble Lord, Lord Newby, no, trade is not good for all. The European Union is an organisation where the producer is placed above the consumer, where the powerful prosper at the expense of the weak, where huge youth unemployment is deemed acceptable and where government comes before the governed.

On leaving the European Union there is a real opportunity to work towards global free trade. Although no one pretends this will be easy, it has this extraordinary feature: it can be done unilaterally. If a country dismantles tariff and non-tariff barriers while others do not, that still brings benefits that others come, in time, to emulate. That is the lesson of history. It is a vision that offers peace, fairness and prosperity to a country and to a world that has become full of self-doubt. My right honourable friend the Prime Minister has spoken of a post-Brexit Britain becoming the “global leader” in free trade. Can I ask the Minister what the current thinking is on that? I can think of no greater ambition, and it must be ever present in our minds in the months and years ahead.

--- Later in debate ---

[Baroness Ludford]

My Lords, to start, while I fully share the concerns of the noble Lord, Lord Framlingham, about the spread of diseases, the sealing of our borders is not the answer. If instead of co-operating we start blaming each other—Britain needs to remember its own track record on exporting animal diseases—we are doomed to hang separately. I thought Brexit was supposed to mean global Britain, not closet Britain.

The Government’s attitude to parliamentary scrutiny of its conduct of Brexit negotiations is rather perfectly illustrated by the publication of the foreign, security and defence paper today: the Minister appears on the “Today” programme, the media have the paper under embargo, and parliamentarians and the public get it many hours later at lunchtime, when it finally appears on the website.

Last week’s Statement on the progress of negotiations said that the negotiating rounds were about reaching detailed understanding of each side’s position and beginning to drill down into technical detail. However, the Brexit Secretary just days before referred to the partnership paper on future customs arrangements as blue-sky thinking, so detailed it was not. That paper will not help retain the jobs of the Airbus workers in Wales to which my noble friend Lady Humphreys referred.

The Brexit Secretary also said last week that the rationale for the partnership papers is that they are,

“designed to make points to our European partners so that they could see what the future might look like under our vision”.—[Official Report, Commons, 5/9/17; col. 48.]

As the right reverend Prelate the Bishop of Birmingham said, we need a strategy—and, I would add, practicalities. Vision butters no parsnips. The Minister said in her introduction that the Government do not aim to dictate the future arrangements. Leaving aside the obvious fact that they cannot dictate as it is a negotiation, this fig leaf does not cover the lack of hard proposals with realistic content.

It is hard to blame Michel Barnier for his exasperated reaction to the UK’s demand to start negotiations on future relations. He said:

“We must start negotiating seriously. We need UK papers that are clear in order to have constructive negotiations. The sooner we remove the ambiguity, the sooner we will be in a position to discuss the future relationship and the transitional period”.


As my noble friend Lord Newby said, the Government’s ambiguity is not constructive.

It is largely the behaviour of the UK Government that is preventing an important linkage between the withdrawal negotiations and the future relationship negotiations, and a speedy move to the latter—not least their refusal to deal honourably, as well as toughly, on the divorce bill, which echoes what the noble Lord, Lord Kerr, said, and their ungenerous positions on the rights of EU citizens. I contend that this Government are not generating the necessary trust to move the negotiations on. This is not a case of bad, rigid, punishment-mode Brussels; it is a case of a Government who, 15 months after the referendum, are unable to act in a grown-up, competent, organised manner and who indulge in occasional, extremely unproductive hissy fits. The Government need to be honest and willing to compromise, as the noble Lord, Lord Bridges, urged. My noble friend Lady Kramer, with good reason, thanked the noble Lord, Lord Blencathra, for revealing the Brexiteer war mentality, which helps explain the lack of progress. The Government would do well not to listen too much to that mentality.

My noble friend Lady Kramer also raised the prospect of how the Government seem to be pursuing international regulatory co-operation, rather than focusing on a relationship with the EU regulatory regime. I suspect that the UK is trying to subvert the importance of EU regulation by diluting it, and I really do not think that is going to be helpful.

Other noble Lords have produced their own lists of rules and themes. I have detected eight common features of the position and partnership papers. First, there is always an assertion of common goals, that continued co-operation is in both sides’ interests, and a declaration of undying devotion to all things European, including as my noble friend Lord Wallace of Saltaire noticed in the paper today, a paean of praise for the European co-operation, foreign and defence policy that we have never heard from any government before probably. There is even sometimes an assertion that we will co-operate even more once we are out of the EU. Often this is accompanied by a strong hint of “they need us more than we need them”.

Secondly, there is an assumption that the degree of benefit and convenience for us Brits will stay pretty much the same as we enjoy now through membership of the European Union, even when we leave its arrangements. So nobody needs to worry.

Thirdly, there is a declaration that the deep and special partnership we seek goes way beyond any existing run-of-the-mill third country, because we are special. Our relationship would be unprecedented, which I have come to realise is an excuse for not pointing to any concrete examples of existing co-operation for a non-EU member state, or practical guidance on how ours would work. The term unprecedented is a convenient peg not to explain.

Fourthly, there is a tone ranging from optimism to fantasy that runs through all of the papers. Indeed, the fifth feature is insufficient detail of how the Government see the actual arrangements working in the context of a future relationship. Several noble Lords have mentioned that in the context of the science field. There is also a lack of realism on the costs involved. The Institute for Government yesterday published a report which says that the costs of the customs arrangements could be up to £9 billion. We need to confront those kinds of figures.

The sixth feature is to cite other third countries—variously Norway and Switzerland, sometimes Canada. But we then reject EEA membership, so quite how these are good examples I am not sure. Then it is said that the UK’s relationship will be unique, or uniquely ambitious, because of our starting point of close integration.

The seventh feature is that we want to maximise certainty about what the arrangements will be while supplying no basis for what that certainty looks like. The last feature is that we are to have autonomy of UK laws, with the prospect of therefore diverging from European laws and a regulatory gap—but that we want the maximum depth and specialness in the relationship, including lots of mutual recognition and reciprocity. The noble Lord, Lord Liddle, dealt with this very well.

[Noble Lords]

Where is he?

[Baroness Ludford]

That is not for me to answer. As Michel Barnier has described it, this last position—the freedom for the UK to adopt its own standards and regulations but to have them automatically recognised by the EU—is “simply impossible”. He said,

“You cannot be outside the single market and shape its legal order”.


His position is surely correct.

I am afraid that the topic of citizens’ rights illustrates how the Government have squandered time, trust and goodwill. I do not have time to go into the detail, but the way in which the Government have let EU citizens down is a great shame, given that the original problem was a simple guarantee of rights.

We have rightly taken the Government to task in this debate for their lack of clarity and precision. However, may I also press the Opposition? I understood that the Labour Party was now committed to single market and customs union membership during the transitional period. However, the Motion cites “participation”, which is not so precise, while their leader, Jeremy Corbyn, has reverted to the manifesto language of mere “access”. I thought that was history.

[Baroness Smith of Basildon]

Come on.

[Baroness Ludford]

Perhaps the noble Baroness might be able to explain rather than heckle me. That would be helpful. I look forward to the responses from the noble Baroness and the Minister.

Update on the Progress of EU Exit Negotiations

Baroness Ludford Excerpts

Tuesday 5th September 2017 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I thank the Minister for repeating the Statement. In fact, I welcome her back from what has been a busy summer for her—but as nothing to what is to come over the next 18 months. While any progress, however limited, with regard to EU citizens is welcome, how much better it would have been if the Government had heeded our call 12 months ago, made clear our commitment to those living here and got down to the details at that stage, rather than recently. The matter needs to be resolved urgently.

More broadly, however, the overall Statement is rather like a piece of lace trying to protect the Government’s modesty but with rather more gaps than fabric. The Minister’s office kindly sent me the future partnership papers over the summer and at times I wondered whether those rather bland papers—almost non-papers—really represented the true extent of the Government’s thinking, or simply the very least they dare get away with without waking the slumbering Rees-Mogg.

Just yesterday, the Irish Foreign Minister said that the Secretary of State’s plan for the Irish border,

“needs a lot more work”,

and that,

“unless there is progress on that issue, we are not going to get to phase two”.

The mood music from Brussels and across the capitals tells us it is very unlikely that the EU will decide in October that “sufficient progress” has been made to move on to the all-important talks on our future relationship with the EU—our nearest and largest market. So while David Davis claims he remains optimistic that a seamless trade deal can be struck with the EU, Michel Barnier speaks of “no decisive progress” and says that “frictionless trade” is not possible outside the single market and customs union.

Even the Government are unclear on how trade outside a customs union could be frictionless. They have dropped after just a few weeks their untested blue-sky thinking—it sounded more psychedelic to me—for a track-and-trace system, using technology and trust to replace customs controls. Anyway, we understand that the IT for any new customs checks is not anticipated until January 2019, just two months before our supposed departure date. We all know about government procurement of that size.

Looking beyond the EU, Liam Fox now seems to be saying that he is turning down free trade deals because we do not have the capacity to negotiate them, and that instead we should try to duplicate the EU’s trade relations with third countries, with a sort of rollover of existing deals. This cut-and-paste job is, I would have thought, hardly worth the efforts of a Fox negotiator, who is now without his Minister here in the Lords. In January, the Secretary of State claimed to be aiming for,

“a comprehensive free trade agreement and a comprehensive customs agreement that will deliver the exact same benefits as we have”.—[Official Report, Commons, 24/1/17; col. 169.]

Can the Minister let us have the Government’s current thinking on this?

Can the Minister also tell us where we are on a transitional agreement and whether the words she just used about not having to negotiate twice suggest that the transitional agreement will be on the same terms as now? I hope she and her colleagues have finally come to accept that there can be no bespoke transitional arrangement. There will be no time to negotiate that and the sensible thing is to remain in a customs union with the EU and operate single market rules, which are key to our vital industries, while the long-term relationship is agreed and given time to bed in. Can she also tell the House whether the Government will publish the Treasury’s analysis, which reportedly shows that the economic benefits of future free trade agreements will be less than the economic costs of leaving the customs union and single market?

Can the Minister also update the House on the involvement of the devolved authorities? The JMC, which brings together Scottish and Welsh Governments and, in theory, the Northern Ireland Government, has not met since February and will not convene again until mid-October, There has been no substantial response to the joint letters of 14 June and 23 June from the relevant Ministers, Mark Drakeford and Mike Russell. Despite the terms of reference for that JMC committee being to seek to agree a UK approach to Article 50 negotiations and to provide oversight of negotiations with the EU, the Government published their summer papers with absolutely no consultation and little advance warning. This means that the Scottish and Welsh Governments have had no opportunity to provide any oversight of the negotiations.

The clock is ticking. Industry, farmers, supermarkets, airlines, road haulage, lawyers and accountants are all coming to me; I am sure they are going to the Government as well. They are all concerned about the lack of clarity and certainty, while consumer representatives are getting virtually no access to Ministers and fear that their interests are being overlooked. It is not just the EU that has to decide whether “sufficient progress” has been made. This House and Parliament must do so, too, and question whether the direction of the Government’s thinking, as well as its speed, is up to the task ahead. I fear that this Statement offers little reassurance.

[Baroness Ludford (LD)]

My Lords, I also thank the Minister for repeating the Statement. I am afraid the Government have shown themselves to be insufficiently prepared and, at times, even undisciplined and undignified in throwing insults at Brussels. They have rather squandered the 14 months since the referendum, including an unnecessary court battle to prevent parliamentary accountability and three months on an unnecessary general election.

There have been some steps forward, with the useful publication of the position papers—albeit in recess and given to the media several hours before they were made available to members of the public, including parliamentarians—and the acceptance of a transitional period, although without specifying how long the Government want that to be and with no acceptance of whether it would mean being in the customs union and the single market. Like the noble Baroness, Lady Hayter, I was intrigued by the reference in the Statement to it not being in either of our interests to run aspects of the negotiations twice. The only way I can see that happening, unless the Minister can contradict me, is if we stay in the customs union and single market during the transitional period and in the long term. There has also been some progress on EU citizens and an acceptance of some role for the European Court of Justice. In July, there was an acceptance of financial obligations from commitments made while we are a member state. These acceptances, however, were all inevitable. It would have been better if they had not had to be dragged out of the Government.

There are still, however, several impractical red lines and there have been some rather backward steps. The Home Office has sent letters to a significant number of EU nationals threatening them with immediate deportation, which hardly makes for good mood music for the negotiations, apart from being obviously distressing for those individuals. We have had a repeat from the Prime Minister of the “no deal is better than a bad deal” mantra, which we had hoped had been put to bed. There was an agreement on the sequencing of the talks; now that acceptance is put up in the air again by the Government. We understood that the Government had accepted the principle of the financial liabilities; now all that is also being challenged.

This fickleness and lack of reliability is fomenting some distrust of the Government. It makes it much harder for the EU to agree a linkage between the elements of the Article 50 divorce arrangements and the future relationship. For instance, if the Government would state the period of transition they seek, the status, in terms of the customs union and the single market, and what continuing contributions they propose to make in respect of that status, that might facilitate an agreement on the liabilities or the existing commitments. If the Government said that they wanted to stay in the customs union and the single market, that would at a stroke resolve many of the worries over Ireland we are in the course of debating this afternoon.

While the Government rather go round in circles, businesses are having to make relocation decisions now, affecting jobs, the pound drops and the economy slows. The Government keep reproaching the EU for not coming up with concrete suggestions for flexible solutions, but if the Government cannot specify what end goal they are seeking, how can we expect Brussels to come up with flexibility to fit what the Government want? It is Catch-22.

It was suggested that the customs solutions put forward in the paper about three weeks ago were innovative, but they were not practical or thought through, and even the Secretary of State called them blue-sky thinking a mere couple of weeks after the paper was published. That hardly gives a good solid basis on which Brussels can engage with those suggestions. If the Government have a strategy, as opposed to a series of delays, reactive statements and outbursts, will they share that strategy with Parliament and the British public? Are we not secondary to an audience of the ideologically obsessed hard Brexiteers in the Tory party’s ranks and outside them who are not happy? I see that Arron Banks is trying to unseat Tory MPs, including Amber Rudd. Perhaps that accounts for the Prime Minister repeating the “no deal” mantra. It is unhelpful and petulant to raise, even as a possibility, a chaotic, “falling off a cliff-edge” Brexit. Will the Government level with Parliament and the public and be honest about the fact that, as we are proposing to leave the EU club, the UK cannot expect to retain the full benefits of club membership? We cannot have our cake while eating it. The fact that they need us as much as we need them is untrue, and we need to compromise. It is up to Britain to set out in detail its preferred destination and how to get there. As one journalist put it:

“The departing ship is watched”—


by the EU—

“with both sadness and concern, but there is no rush to take on its navigation problems”.

Will the Government please tell us their proposed destination and how they are going to navigate?

[Baroness Anelay of St Johns]

The strategy of this Government is clear, straightforward and pragmatic. It is to ensure that we build a deep and special partnership with our closest neighbours and allies which is of benefit to the people of the EU 27 and the UK after we leave. This is the most momentous form of negotiation that I have experienced in my lifetime. It is a privilege to be at the Department for Exiting the European Union and to see the hard work that has been going on to deliver that path towards a successful legal decoupling while still remaining closest friends. Considerable progress has been made. I thank both noble Baronesses for their contributions and their questions and I will seek to amalgamate my answers to cover them.

The nature of negotiation which has been carried on by this country over centuries has varied from being on the battlefield in Tudor times against some who are now our dearest neighbours, Portugal and Spain, to negotiations, a matter of finding methods of agreement of convergence—not dictating, saying that we will agree to this only, but setting out reasoned proposals. That is work that has been done. There is going to be no delay. The department has been working with other departments across Whitehall to look at the ways in which we can publish our proposals and give options for the negotiations. That is clear in the customs paper, which proposes two options, one a highly streamlined approach which would ensure that the customs arrangement works as well as can be done with modern technology, and the other a new customs partnership with the EU. I heard what the noble Baronesses said about the fact that the Secretary of State has pointed out that there are problems in some of those, because there are always problems in finding new ways to deliver customs agreements, but they are not insuperable. That is why the pace of the negotiations has been deep and fast. Michel Barnier and we have made it clear that we are ready to make even more dates available for negotiations, if that is helpful, because we want to continue to make the progress that has already been achieved.

There is more to be done; that is absolutely right. The noble Baroness, Lady Hayter, referred to the Irish Minister saying that the Northern Ireland paper needs a lot of work. We agree, but we also say that we have made great progress, and Ireland agrees. We have received congratulations from Ireland about the progress that has been made. The summer papers are not vague. They provide a basis for negotiation, not for dictation.

The noble Baroness, Lady Hayter, asked about our position on a transitional agreement and implementation. Our position is set out clearly. From having carried out all the consultation with business—not only those businesses based here but international businesses—and consumers, we appreciate that there could be different lengths of time that different organisations and businesses need to achieve movement to a new relationship with the EU. Therefore, it is only by carrying out our negotiations with the European Union on our future relationship that we can finalise how long that implementation period would be. We have been clear that it will not go beyond the date of the next election.

With regard to the question asked by the noble Baroness, Lady Hayter, about publishing Treasury analysis, I say that it is not usually published. It is for government use, but I have made it clear before that we have carried out analysis of more than 50 sectors, and we will publish the list of what those sectors comprise. We continue to consult business and consumers, and I am very pleased that I am able to be part of that.

With regard to the devolved Administrations, we have throughout made it clear that it is essential that they are engaged at every stage. Whether it is the JMC—the next one is in October—person-to-person phone calls or visits, as carried out by my honourable friend Robin Walker this summer, they continue. He visited the Crown dependencies as well. It is not a matter of leaving it for meetings; it is a continuing conversation.

Throughout all this process we want to be in a position where, by setting out in our papers the implications of leaving the European Union but maintaining a strong trading relationship, we enable us and the EU 27 to avoid running negotiations twice. The noble Baroness, Lady Ludford, referred to this and asked whether this would mean that we would be staying in the customs union and the single market in the implementation period. That is not the answer to having a transition and implementation period. We are seeking a negotiation to see what that period would look like. It is does not mean that we stay in the single market with all the ceding to others the right to make decisions about our destiny.

I believe that the noble Baroness, Lady Ludford, said that we had challenged the principle of financial liabilities. No, we have not. In fact, we have maintained that we accept that there is not only a legal basis for the EU and us having to ensure that there are liabilities that need to be met but also a moral responsibility. My right honourable friend the Secretary of State made that absolutely clear in his press conference last week with Michel Barnier. But we do not hand the keys of the Treasury to the Commission. What we do, on a friendly but rigorous basis, is to work through with it, challenging the legal basis but also beyond that, the calculation of what should be paid and how and when. That, again, is woven into the nature of our future relationship with the European Union.

This has been a hard-working summer for all. I do not believe that Peers simply disappear into the ether and do nothing, and I know that many noble Lords have already read the papers and discussed them. I put on record my particular thanks to the noble Baronesses, Lady Hayter and Lady Ludford, and the Convenor of the Cross Benches, the noble and learned Lord, Lord Hope of Craighead, for agreeing to have conversations with me during the Summer Recess on these matters. It is only by doing that that we can deliver what this country needs.

Brexit: United Kingdom-European Union Parliamentary Assembly

Baroness Ludford Excerpts

Wednesday 12th July 2017 Lords Chamber

[Baroness Anelay of St Johns]

Absolutely right, my Lords, but in defence of the noble Lord, Lord Soley—although my goodness, he does not need me to defend him—it is a fact that the Government simply cannot under the rules of the European Parliament take any action on this specific matter. As for the generality of my noble friend’s comments: absolutely right.

[Baroness Ludford (LD)]

My Lords, thoroughly disagreeing with the previous question, is not the European Parliament, however much mocked in this country, showing the mother of Parliaments just what parliamentary control looks like in the modern era? Its ability to veto the Brexit deal means that the other institutions have to front-load information to the Parliament, so there have been seven position papers, as against one from our Government. Unfortunately, parliamentary scrutiny in the Westminster Parliament is still rather unstructured, despite many promises. We have things to learn from the European Parliament.

[Baroness Anelay of St Johns]

My Lords, it is recognised by countries around the world where I have visited as a Minister in the Foreign Office that other Parliaments have much to learn from the strength of scrutiny in this House and another place, and indeed, through our Select Committees, as well as the way in which the Chambers work. With regard to scrutiny of papers, I believe that my right honourable friend the Secretary of State made it clear to the European Union Select Committee yesterday that further position papers are expected shortly.