European Union (Withdrawal) (No. 5) Bill

Baroness Neville-Rolfe Excerpts

Committee: 1st sitting (Hansard): House of Lords
Monday 8th April 2019 Lords Chamber

Moved by

[Baroness Neville-Rolfe]

4: Clause 1, page 1, line 10, after “date” insert “, which must not be later than the end of the 2019/20 financial year,”

[Baroness Neville-Rolfe (Con)]

My Lords, Amendment 4 seeks to insert a restriction on the date referred to in line 10:

“which must not be later than the end of the 2019/20 financial year”.

This may in practice be a variation on the provision proposed by my noble friend Lady Noakes in her amendment, but, as I explained at Second Reading, it is born out of frustration at not being able to table specific amendments on financial impact.

I want to draw attention to the fact that this Bill—agreed by all to be a constitutional innovation—is not the subject of a money resolution, as the Speaker decided in the other place. Equally pertinently, it has no impact assessment, and yet it could bring about a delay in Brexit without end or resolution, which could be extremely costly to this country.

Whatever one’s views on Brexit, it must surely be common ground that altering the date of the event will have financial consequences. I accept that some of the costs will be negative and some will be positive, but the longer Brexit drags on, the more the cost of uncertainty for all economic players and the extra cost to the Treasury in payments to Brussels will weigh against the benefits of avoiding no deal.

Although we cannot persuade the Speaker of the House of Commons to change his mind on a money resolution, I believe that the promoters of the Bill should work up an impact assessment, which would cover some of the same ground. I also believe that adding a date gives the Government an incentive finally to resolve matters. Alternatively, if the promoters will not produce an assessment today, one should be required when the Government use the power to define the length of an extension in their statutory Motion.

Let us look at some of the costs of the new approach, as the costs of no deal, now threatened for 12 April, have been well articulated already and are well understood. As a businesswoman, I know that they are real worries and that they are especially acute in farming, the motor industry and industries such as food which depend on just-in-time supply chains and mutual recognition of labelling. But there is also a huge cost to uncertainty. There are literally billions of pounds which business is waiting to invest once, but only once, the Brexit uncertainty disappears. This could be a great driver of growth and productivity, because the combination of low capital investment and cheap, flexible labour from the EU is a key reason why productivity is flatlining, despite an increase in infrastructure, digital and R&D investment by this Government.

In other sectors such as financial services, which now represent a very large percentage of GDP, the critical thing is to turn the political declaration into a free trade agreement with the EU 27. Unfortunately, the Bill as drafted could allow the EU 27 to delay negotiations to the point where the resulting uncertainty has allowed it to steal more and more of our market. The beauty parade to attract investment which would have taken place in the UK to go to Paris or Milan is very energetic. We heard in the EU Financial Affairs Sub-Committee last week how jobs and work are moving, never to return, to Frankfurt, Dublin, Amsterdam, Brussels and elsewhere, even if we stay in the EU.

I feel that the Brexit process has lacked transparency from day one. If there was a fuller and more honest discussion of the complexities of what is planned when and of the likely implications, more dynamic analysis, objective pros and cons, both economic and political, and less of Project Fear, the country would be less divided and perhaps less critical of what we in Parliament have achieved.

There is another reason why a system of financial assessment and timetable constraints is desirable. We will have let the genie out of the bottle if this rushed, defective and uncosted Bill is passed. I fear very much that it will act as a precedent for future Private Members’ Bills even more financially damaging, such as on the regulation of utilities or whatever. This is a constitutional revolution and, as I said last week, there will be no way to hold Back-Bench sponsors to account if the mechanism in such a Bill causes damage.

As my noble friend the Leader of the House just said, it is important not to set a precedent. The Bill is about stopping a premature no deal, for which I have some sympathy, but for the reasons I have stated the Bill needs amendment. I would be glad to hear from someone among the opposition promoters—although I am not sure who; perhaps the Deputy Leader of the Opposition the noble Baroness, Lady Hayter, who has always supported impact assessments, or another of her colleagues—on how we might meet some of these concerns about proper assessment. My noble friend the Brexit Minister may also be able to think of a way to do so.

Given our often tedious scrutiny role—I am afraid that this is a technical point, and some may feel it is tedious—it was cheering to hear the Secretary of State for Exiting the European Union express the expectation that this House would correct the flaws in the Bill. That is what we need to do today. I beg to move.

[Lord Pannick (CB)]

My Lords, I oppose the amendment. It would frustrate the very purpose of the Bill, which is to leave it to the House of Commons to identify what it thinks is the appropriate date.

--- Later in debate ---

[Baroness Neville-Rolfe]

I am grateful for the support I have had for my amendment and for the echo that uncertainty in the Brexit process is a problem for business and for citizens of this country. We really need to resolve this.

[Lord Framlingham (Con)]

Given that my noble friend has put uncertainty at the heart of her remarks, does she not think that at least some credence should be given to the idea of coming out and leaving Europe this Friday, which would give the certainty that everyone craves? There may be difficulties, but given that certainty is one of the overriding factors, surely that should be considered.

[Baroness Neville-Rolfe]

I will move on, rather than try to be Prime Minister for the afternoon. Clearly, I was concerned that it was not possible to look properly at the financial and business impacts in this Bill. I have heard it said that we would not take this as a precedent because of the special circumstances, which certainly gives me some comfort. I have to accept that the date is a matter that needs to be decided by a combination of the other place, the Prime Minister—and, of course, the EU, which I am afraid will also have a bearing on what date we eventually leave the EU.

In the circumstances and with thanks to those who have spoken, I beg leave to withdraw the amendment.

Amendment 4 withdrawn.