European Union (Withdrawal Agreement) Bill

Debate between Baroness Quin and Lord Lea of Crondall

Committee: 3rd sitting (Hansard continued) & Committee stage & Committee: 3rd sitting (Hansard continued): House of Lords
Thursday 16th January 2020 Lords Chamber

[Lord Lea of Crondall (Non-Afl)]

My Lords, the President of the European Commission indicated last week that there was no way that the Government’s open-ended agenda—I stand to be corrected about the detail of the shopping list for the rest of this year—could be dealt with by the end of this year. Indeed, it is seen in Brussels as simple wishful thinking; Boris Johnson will think of another wheeze in time to keep the show on the road.

Instead of “Get Brexit done”, the real question is “Let’s get Brexit real”. At the moment, we assume that the starting point was something like the withdrawal agreement and political declaration of October 2019, but we would like to see a credible programme of what the Government will try to negotiate by the summer or autumn in order to meet the commitment made by the Prime Minister. It is in that connection that we could have something like EEA/EFTA as a point of reference—a tick-box, if you like—for many of the questions that will arise. We have just heard an interesting debate about Erasmus, but there are 20 or 30 such subjects, all of which will need decisions, including in many cases on their compatibility with free trade for the rest of the world—all that work has been done over many years since the Stockholm Convention of the late 1950s and Britain’s participation in EFTA and, eventually, the EEC in 1973-74. We have now therefore to set out where we want to be on the whole range of things where we have alignment at the moment.

The Government often say “We have alignment at the moment”, so why not say the next thing? If we are taking some comfort in the fact that we have alignment at the moment, is not the question surely why we want to move away from it? Do Her Majesty’s Government have some ideological reason for moving away from alignment? At the end of January, we will be putting out the flags to say Brexit is all done—it has hardly started, as we know.

The EFTA and EEA agreements have other consequences as well. I am not suggesting that we would enter into them, given the short title of this Bill, but they include the very important questions of jurisdiction of settlements of disputes, the arbitration panel and so on, all of which are important if we want to continue to attract foreign direct investment into Britain. As the Financial Times charts, this is going down very rapidly, partly because these rather straightforward decisions have yet to be made. If they are not made very soon, there will be an assumption that the Government have not thought through how these Brexit-related issues will be resolved.

To remind ourselves, the EEA agreement provides for a free trade area covering all the EEA states. It does not extend the customs union to the EEA/EFTA states. The free trade area also abolishes tariffs on trade between the parties, but there are still border procedures. This is a model that I hope the Government will not run away from simply because it was not their idea in the first place. To get Brexit real, these become very serious options for consideration, and I hope that the Minister will agree that we should look at all these questions on their merits and at having a framework for the compatibility of them all. Looking at each question one by one is not necessarily the most helpful way to see how a framework can be agreed. Surely, by the end of this year, the notion is not just that we will have a number of separate agreements on everything under the sun but that we will have some sort of framework, because there are consequences between the different silos in any framework. I hope the Minister appreciates that—I say it in a constructive spirit—because it is, unfortunately, against the background that we will have left the European Union, possibly to rejoin the EEA at a later point. That is another question, but it is not something that the Minister should balk at simply because it sounds like a stalking horse for rejoining the EU. It is a perfectly good shopping list for the Government. I would like to know when the Government’s framework concept for the negotiations in the next few months will be published, or will the Government just keep all their cards up their sleeve and not publish such a thing?

Take the question of jurisdiction: it is very odd indeed that we should now want to attach more importance to jurisdictions where we have no judge, as we do in the European Court of Justice at present. During the transition and under the future envisaged in the political declaration, does the Minister agree that we will have to accept that it will be for the ECJ, without a UK judge, to present the authoritative view in any imaginable case between the EU and the UK before the new arbitral tribunal?

We know that there are issues that do not necessarily fit within the framework that I have just described, such as the free movement of persons and mutual recognition of diplomacies. There are limits to how far one wants to go in putting everything in what we might call a framework agreement but, again, a lot of work was done in the EEA negotiations. If we are going to shadow anything to see what works and what does not, that would be an excellent place to start. It would be far more effective than a one-off set of negotiations on a whole range of things one at a time. I hope that, in that spirit, the Minister will agree that there could be value to the Government in looking at such a framework.

[Baroness Quin (Lab)]

My Lords, I have not spoken on this Bill so far, because I was not able to attend the closing speeches at Second Reading, though I have followed most of the Bill proceedings. I added my name to the amendment moved by my noble friend Lord Lea because I felt that it was a way of raising the issue of how close we manage to stay to the European market after Brexit. The amendment of course raises the importance of alignment. We have already heard several times from Ministers today that we are not leaving Europe even though we are leaving the EU, yet in so many ways we are putting obstacles in the way of our ongoing relationship with Europe. In terms of alignment, there is much emphasis on having freedom to make our own standards, but this seems quite an illusory freedom in many ways, which is probably not in our interests. Obviously, there may be some rules within the EU that we do not particularly like, but most of the rules we have agreed over the years are as part of the single market, which the United Kingdom very much pushed for in its early stages. Most of those standards and rules concern such things as consumer safety, environmental standards and sensible trading arrangements: we must not forget that as we move forward. In many ways, we actually made those rules: we were the prime mover in making those rules in the European market.

One of the arguments against being too close to EFTA was that that would make us rule-takers rather than rule-makers. Of course, that argument already concedes the fact that we have been rule-makers in the past. Within the EFTA arrangements, there are certainly ways in which we can influence the rules, which will not be the case if we do not follow any kind of close alignment after Brexit.

I have been struck in the course of our debates by how the issues I have been raising have been translated into vivid examples in different parts of the UK. I was very struck by the remarkable debate that took place quite late on Monday night about Northern Ireland, about the importance of the single market to Northern Ireland’s relationship with the Republic and how vital unfettered access to the UK market is to Northern Ireland. In particular, my noble friend Lord Hain made that point very powerfully, and there does not seem to be any easy answer. I cannot understand, and nobody has been able to explain it to me so far, why the arrangement consists of trying to assess whether goods that go into Northern Ireland from the UK may, or may be likely to, end up in the Republic of Ireland. I have no idea how that system of assessment is going to work. It seems unworkable and the debate in your Lordships’ House on Monday night underlined that point very strongly.

We also know that Scotland is very keen to keep as close to the European market as possible and is concerned about the Government’s trading stance. In my own part of the country, the north-east of England—the Minister will not be surprised that I mention it, because I always do—a higher proportion of our trade goes to the European market than any other region of the UK. When the Prime Minister visited the north-east recently, before election day, I was very much hoping that someone would ask him whether he accepts the figures of his own Government that the north-east is going to lose out in so many specific ways. He was never asked that but I would have liked to ask him whether he accepted those figures or, if he did not, what his own figures were. Perhaps the Minister will give us some clarification of that now. Certainly, our future trade arrangements will be vital to the future of the north-east economy.

There is a political point that needs to be made. We know that the referendum result in 2016 was narrow and that, despite the Government’s handsome majority of seats in the House of Commons now, none the less those people who voted for parties who either wanted a second vote or were in favour of remain comprised 53% as opposed to 47%. That is a contrary picture to that in 2016 and for that reason, while the Government have a mandate in terms of seats to go ahead with Brexit, they also have a responsibility to work towards a solution that will at least not seem totally antagonistic to what the other part of our population actually thinks. For that reason, a compromise would be to stay as close to the European market in as many constructive ways as we can.

We have just had a fascinating debate about Erasmus: that is a very good example of the kind of thing I am talking about. I urge the Government to look at this whole issue of alignment and staying close to the European market in a much more positive and constructive way than they have up to now.