European Union (Withdrawal) Bill Debate
Full Debate: Read Full DebateChris Leslie
Main Page: Chris Leslie (The Independent Group for Change - Nottingham East)Department Debates - View all Chris Leslie's debates with the Ministry of Justice
(6 years, 8 months ago)
Commons ChamberWith this it will be convenient to discuss the following:
Amendment 345, in clause 8, page 6, line 32, at end insert—
“(2A) Regulations under subsection (1) may, in particular, include regulations to match or exceed World Health Organisation air quality standards.”
This amendment is intended to ensure that the UK continues to meet international air quality standards after withdrawal from the EU.
Amendment 292, page 6, line 38, at end insert—
“(e) impose or increase taxation”
This amendment would prevent the imposition or increase of a tax by regulations made under Clause 8 to comply with international obligations.
Amendment 390, page 6, line 38, at end insert—
“(e) confer a power to legislate (other than a power to make rules of procedure for a court or tribunal).”
Amendment 352, page 6, line 40, at end insert—
“(5) Any power to make, confirm or approve subordinate legislation conferred or modified under this Act and its schedules must be used, and may only be used, insofar as is necessary to ensure that standards of equalities, environmental protection and employment protection, and consumer standards will continue to remain in all respects equivalent to those extant in the EU.
(6) In particular, no agreement relating to international trade or investment with the EU or with a third-party state or states shall be made that permits or requires standards of equalities, environmental protection and employment protection, and consumer standards to fall below those extant in the EU at the time.”
This amendment would ensure that in exercising the powers under this provision, the Government maintains equivalent standards to the EU, and in particular, in making trade agreements.
Clause 8 stand part.
What a privilege it is to have the opportunity to speak on such a momentous evening when Parliament has had the guts and foresight to stand up to the Executive, take back control and give hope to those who thought that all hope was lost, and to see Members from all parties working together in the national interest.
It is wonderful to see so many former Ministers on the Conservative Benches discovering their love of parliamentary sovereignty when they are no longer on the ministerial merry-go-round. I have far greater respect in this place for those parliamentarians who have never held ministerial office and actually respect this place, even when things are not going their way.
I have even more respect for those who have never held ministerial office and who actually vote with their conscience, rather than looking at the ministerial ladder ahead of them and deciding to suppress their views for other reasons. Anyway, we have been there and dealt with that issue.
In speaking to new clause 20, I want to make a couple of introductory remarks. Over the last 44 years, I think, of Britain’s membership of the EU, the UK has accrued a massive array of international obligations, rights and authorisations via a series of 759 treaties—this is absolutely right—with 168 non-EU countries. Of course, after 29 March 2019, those treaties, because we have accrued them by virtue of our membership of the EU, will fall away. They will cease to exist; they will be no more; they will have ceased to be; they will have expired—they will be ex-treaties. The United Kingdom will no longer be party to those agreements with those third countries, unless of course we have made efforts to replace them beforehand to provide for a smooth continuation.
New clause 20 would require Her Majesty’s Government to publish one month after Royal Assent—we can give them that month to get themselves together—a comprehensive assessment of each of those treaties, agreements and obligations; to set out if there are any requirements they want to amend or renegotiate; and to make an assessment of whether the powers in clause 8 might need to be used. Sir David, you will know, in your eagle-eyed way, that clause 8 gives powers to Ministers, for two years at least, to make a series of orders and regulations to prevent or remedy any breach in those international treaties, as if achieved by an Act of Parliament. I pay tribute to the late Paul McClean, the Financial Times journalist who sadly died in September, who, in one of his final reports, carried out an extremely comprehensive analysis and assessment of some of these many treaties and international obligations.
That is indeed a question I was coming to. I am sure that the Minister will tell us that the Government have made an itemised assessment of all those 759 treaties.
Those treaties break down as follows: 295 bilateral and multilateral trade deals, whose approval is needed to recreate any multilateral arrangements that will fall away as we leave the European Union; 202 regulatory co-operation agreements, including on data sharing, anti-trust and so forth; 69 treaties on fisheries, including access to waters and sustainable stocks; 65 treaties on transport and aviation services agreements; 49 treaties on customs agreements, including on the transportation of goods; 45 treaties on nuclear agreements, including on the use of nuclear fuel with other countries, parts and know-how; and 34 treaties on agriculture.
Indeed, and after the Minister has finished the first page of his speech, on the impact assessment, he will turn it over and tell us about the contingency plans that will be in place.
Imagine, Sir David, that you are a Government Minister at this point in time and you are thinking, “Well okay, I’ve got all these 759 treaties. What are we going to do? How are we going to deal with this? How much time is it going to take to renegotiate them or at least make sure they can be carried over?” Let us assume that all the other parties to those agreements are happy simply to cut and paste them across. Of course, we cannot necessarily assume that, but let us do so. If, for each agreement, it took a civil servant one day to analyse the contents, a day to contact the third party country concerned, of which there are 160, perhaps a day to track down the decision makers in the relevant Departments here in the UK and the other country, perhaps a couple of days in dialogue with that other country—it would be pretty good if they could do it in a couple of days—and maybe a day to bring together our Ministers and their Ministers, we would be talking, on top of the costs of travelling to those other countries and legal costs, some tens of thousands of hours of civil service time.
Because the hon. Gentleman has, notwithstanding his personal views, accepted the will of the electorate, no doubt the logic of where he is leading us is to put off leaving the European Union for some indeterminate period of time until all these issues are sorted out.
Perhaps the right hon. Gentleman’s constituents knew all this before they voted in the referendum. I am not convinced that many members of the public, whether they voted remain or leave, actually spotted the downstream consequentials of exiting the European Union in this way. Of course, they employ us, as Members of Parliament, to answer these questions. That is our job and it is what we are here to do.
On that basis, is it therefore the hon. Gentleman’s intention to reopen the question so that the public can revisit their decision?
My view is that the British public always have the right to think again and decide the fate of this country as they see fit, but for the time being, in this Bill and with new clause 20, it is reasonable for us to scrutinise the Executive and to say, “How are you going to do it? How are you going to make sure that all the important aspects of those 759 international treaties will be smoothly transposed after 29 March 2019?”
Does my hon. Friend agree that the other parties to these treaties may not quite have the incentive to be as quick as we might need them to be?
My hon. Friend is absolutely right. As these are potentially fresh treaty discussions, other countries may wish to take the opportunity to reopen or revisit the treaty provisions. We may, of course, have entered into those agreements in different political times, so who knows what they may be?
As always, my hon. Friend makes a compelling case for changing the Bill. Given that the Government are battered and bruised this evening after their outstanding defeat, if the Minister comes to the Dispatch Box and says that they do have assessments of the impact of our leaving these international treaties, should we believe them?
I will believe the Government if they publish the assessments, and I am prepared to make an appointment to go to a private reading room in the ex-Treasury building if needs be, but this must be a bit more than an analysis of how many treaties there are: it must be an assessment of their impact and importance.
My hon. Friend is making an important point. Of course, I support his new clause.
I have long been in favour of the arms trade treaty, parts of which fall within EU competence. The EU as a whole was involved in the negotiations on the treaty, and we are a party to it as an individual country. We also have the consolidated EU and national arms export licensing criteria as well as domestic legislation. The arms trade is one of the issues that cut across many different areas of competence, and we are party to a number of treaties relating to it. Is that not exactly the sort of issue that should be examined?
It is, and I think it is particularly incumbent on those who advocated Britain’s exit from the EU to tell us what their plan was. How were they going to solve that problem? It should not be entirely incumbent on the myriad Conservative Members who were fighting for Britain to leave the EU only to disappear when the really tough job came along of deciding how we were to pick up the pieces and ensure that the treaties could continue in some way, shape or form.
Does the hon. Gentleman agree that the Government should carry out an impact assessment to establish whether they have the capacity to negotiate the treaties, given, for example, the Secretary of State for International Trade’s recent admission that they do not have the capacity to negotiate trade deals?
Indeed. For example, last time I heard, only three officials at the Department for Transport were dedicated to negotiating aviation agreements. Those three poor civil servants, although hopefully there are four or five by now, will have a heck of a job on their hands to repair all the open skies agreements and international aviation treaties—that is in just one sector, so think of the implications. But I am sure that those who were advocating a leave vote have a plan to cope with the whole scenario.
I just wanted to help the hon. Gentleman. Given his position in the Chamber, he might not have been able to see that both Ministers were frantically texting earlier. I suspect that they did not have the list of treaties to which he is referring. He might need to supply it at the end of the debate so that they can start doing some work on this.
I want to make a bit of progress as others want to speak.
We in the UK are thinking that we must replace a lot of these treaties. When we leave the EU, our exit will affect not just us but the EU, because a great many of its treaties, obligations and agreements with third countries around the world were predicated on the existence of 28 members. Minus the UK, the other members may need to renegotiate their treaties as well. Ministers might not give two hoots about the implications of that, but those on the EU side of the negotiating table probably do care about it, and that will have ramifications for our negotiations.
Of course, the Foreign Secretary was always telling us that all the other countries around the world were queuing up to do deals with us. He had to fight them off as they asked, “Please may we have a new trade agreement with you?” I have not personally seen that particular queue, but perhaps when the Minister winds up the debate he will be able to tell us how many countries have been knocking on our door seeking new trade agreements.
The hon. Gentleman obviously thinks very little of this country if he feels that other countries around the world do not want to do trade deals with the United Kingdom. Why does he think that?
Those countries already have very good trade agreements with us by virtue of our membership of the European Union, and they are worried about losing the opportunity to have good trade arrangements not just with us, but with the rest of the EU, if those agreements are ripped up and thrown up into air, creating uncertainty. I will be the first person, as a member of the International Trade Committee, to go around the world and try to get those trade agreements, if indeed we do have Brexit, but until that point, I want the right hon. Gentleman to say whether he explained to his constituents before the referendum that all these international treaties were going to be ripped up. Did he say that to them?
The hon. Gentleman needs to answer the question that I asked him first, with all due respect. He said there would be concern among many of these other countries—he did not say which—about what kind of trade agreement there would be, and about access to markets and so forth. Of course they will have concerns; we will also have concerns—that is part of any bilateral trade negotiation. Why does he think, despite these concerns, that they will not wish to do deals with us?
I hope that countries do, and we will need them to, otherwise we will literally be planting carrots in our back gardens. If we do not have trade deals with the rest of the world, we will have to produce more domestically, rather than having the living standards we have previously enjoyed. I am a very pro-trade Member of Parliament, and the right hon. Gentleman should know where I stand on many of these questions. That is why I am asking what the consequences will be not just if we move away from the trade arrangements we have—the finest, frictionless free trade agreement of anywhere in the world that we have right now with the single market and the customs union—but if we then rip up the free trade agreements with non-EU countries that we have enjoyed by virtue of our EU membership. That is another 12% of our exports. Some 50% of our exports are with the EU through our existing trade arrangements, and then there is another 12%—actually, there is another 14% because there are other territories of those non-EU countries as well. That is a big chunk of our trade. I am very concerned about how effectively we can carry out the grandfathering of those FTAs with the rest of the EU.
We must also bear in mind that there are 164 members of the WTO, and they have rights of veto and objection on many occasions. In fact, we recently tried to lodge a suggestion on dividing tariff-rate quotas. This is getting technical, but that is basically dividing up the EU’s share of low or zero-tariff allowances when countries such as New Zealand or Australia try to import lamb. Amazingly, Australia, New Zealand and the United States of America have lodged an objection to the British divvy-up of those tariff-rate quotas. Of course, apparently America should have been knocking on our door, as we were at the front of the queue, supposedly, but it still lodged an objection to our very first relationship with the WTO.
My hon. Friend rightly raises the issue of these countries objecting to any changes to quota, because they will first and foremost seek to protect their own economies, not our economy. In the event that we get a percentage of the EU quota but for whatever reason—customs barriers; non-tariff barriers; the withdrawal of purchasing power—that quota of goods cannot be sold into the UK, those countries’ flexibility to then sell those goods to the EU is lost. That is why they are digging their heels in so early on this issue.
There is another complication. If we are saying that we are going to have regulatory alignment on cross-border issues with regard to Northern Ireland, specifically on agriculture, given that we are in the EU orbit in that sense, how on earth can we then have WTO trade arrangements elsewhere unless we give the same conditions that apply to the Irish Republic to every other country in the world, which the EU cannot accept?
There is a big issue relating to the most favoured nation status arrangement because of clauses in the existing EU free trade agreements. If we are given a deep and special relationship with the EU, the EU will be obliged to offer the same access to Korea and to Canada under the comprehensive economic and trade agreement. There are implications to all this. If we pull one thread, all sorts of things appear.
I will finish shortly. I know that I am trying the right hon. Gentleman’s patience.
The 36 regional and bilateral free trade agreements with 63 other countries are exceptionally important, but there are also trade-related agreements, including mutual recognition agreements and standards for conformity assessments. The Department for International Trade has also said that there are multiple hundreds of mutual recognition agreements. The list is getting bigger and bigger, and it is all on the shoulders of the Under-Secretary of State for Exiting the European Union, the hon. Member for Worcester (Mr Walker).
The hon. Gentleman is going into great detail about the amount of time and effort that is going to be spent, and the number of treaties and trade deals that will need to be done. Does he agree with me on the broader point that we are treading water here? A huge amount of money and parliamentary time is going to be spent, and nothing else will be able to be done.
Let us think about all the important priorities for our constituents, including public service reform and living standards. This is one of the most frustrating things: we are treading water just to keep up what we already have. Indeed, things will not be as good as the arrangements we already have. What annoys me most is when Ministers try to gloss over this and pretend that it is all going to be fine, saying, “There’s no problem here. There’s nothing to see.” Lord Price, who used to be a International Trade Minister, tweeted about the 36 free trade agreements, saying that they were all fine and that:
“All have agreed roll over.”
The current Minister of State at the Department, the Minister for Trade Policy, retweeted that. However, when we ask the Secretary of State whether countries have agreed that they all roll over, we are told, “Well, we haven’t had any objections from them to suggest they might not roll over.” Will they want to renegotiate? We are told, “Well, we haven’t heard from them yet.” This is an incredible example of trying to put the best possible gloss on the situation, and to get past exit day and worry about it all afterwards. The Government will then pretend that everybody knew about this beforehand.
I will finish my remarks now because I want to hear the speech of my hon. Friend the Member for Swansea West (Geraint Davies); we need an assessment of these treaties and of what could be lost; we need an assessment of the risks and of what is at stake; and we need honesty and transparency from Ministers about the consequences. This is not what the public expected when they voted in the referendum, and that is why I urge Members to support new clause 20.
I shall speak to amendment 352, which seeks to maintain for future trade deals the EU rights and protections that are currently enjoyed in other trade deals. A problem that has already been mentioned is that we are going to move away from the comfort zone of the EU, a massive trading bloc which, on 8 December, agreed the key provisions for a trade deal with Japan that will embrace 30% of global GDP and 600 million people and that has integrated in it the Paris agreement. It does not have investor-state dispute settlement, but it does have various protections. One of my key fears about that particular agreement, which will come into effect in March 2019, is that such agreements take a long time to put together. If we want to come along after the event and say, “Can we join in?” the chances are that the terms will not be as good.
As for our negotiations with other countries, if we exit the EU and expect Chile or Uruguay or some other country to offer us the same trade terms that it has with the EU, which is a much bigger bloc, at a time when we are much weaker, we will be seen among the international trading community as a vulnerable victim of our own self-inflicted harm. They will say, “We will give these terms to the EU, but you are just a small player compared with the critical mass of the EU.” That would undermine not only the financial impact of the terms of trade, but the standards that we currently enjoy.
People will be aware that the REACH arrangements—the registration, evaluation, authorisation and restriction of chemicals—mean that manufacturers in Europe are required to prove that a chemical is safe before it is sold. In America, however, manufacturers can basically sell asbestos and other harmful products, and it is for the United States Environmental Protection Agency to tell them that they cannot. The worry is that our regime and our standards may change as we are thrust into the hands of the United States, and that workers’ rights, human rights and other rights may change due to China.
The Minister will know that the widespread use of hormones in meat production in America is giving rise to premature puberty among children, and that the widespread use of antibiotics is leading to much greater resistance to them. There is also chlorinated chicken, genetically modified food and other things, and we will be under enormous pressure from the United States to accept standards that are below those that we enjoy as a member of the EU. Donald Trump stood up at his inauguration and said that he would protect the American economy from the foreign countries that were taking America’s jobs, and he has already shown in the Bombardier case that he will play tough. The United States is a much bigger player than Britain, and the competition between the EU and the US is a matched fight when it comes to the negotiation of a deal such as the Transatlantic Trade and Investment Partnership. We will be a much smaller player, and we will have left the conditions of the EU.
Ministers currently have quite widespread powers to sign deals. The current International Trade Secretary signed a provisional agreement for the comprehensive economic and trade agreement without parliamentary approval, and we should be drawing such powers in for parliamentary scrutiny, amendment and agreement. There is a risk that a negotiated settlement that reduces the standards that our citizens enjoy will happen outside this place. I therefore tabled amendment 352, which seeks to maintain the same standards, rights and protections that we enjoy in Europe, as protection in case we end up being asked to vote on trade deals that have all sorts of dire consequences beneath the surface for public health, workers’ rights and consumer protection.
At all—by regulation or in any other way.
I will turn briefly to the amendments and respond to new clause 20 in the name of the hon. Member for Nottingham East. My Department is leading cross-Government work to assess and act on the international agreements for which, as a result of the UK’s withdrawal from the EU, arrangements will need to be made to ensure continuity for businesses and individuals. Any that require implementing legislation or parliamentary scrutiny before ratification will go through the appropriate, well-established procedures. We are working with our international partners to identify the full range of our agreements that might be impacted by our exit from the EU, and we will be taking their views into account. It would not be appropriate at this stage to publish the type of assessment proposed in new clause 20. Doing so would prejudice the outcome of these discussions and how any action would be put into practice.
I am just looking for a small concession. If the Minister will not do an assessment, will he at least publish a list? The Financial Times has its list of the 759 treaties. Could we have some information from the Government in the public domain about the task that has to be undertaken? That, at least, would be a welcome step.
We will be coming forward with more information on this front in due course. However, a lot of the hon. Gentleman’s speech was specifically about trade issues, and we have a Trade Bill that deals specifically with those issues. If I might gently say, a lot of what the hon. Gentleman and the hon. Member for Swansea West (Geraint Davies) talked about related to the content of the Trade Bill rather than this Bill.
We do recognise the need to promote stability for businesses and individuals, and we will aim to transition agreements as seamlessly as possible. I listened carefully to the hon. Member for Swansea West—I am afraid he is no longer in his place—and I would like to reassure him that this clause has nothing to do with future trade agreements. It is purely to do with our existing international commitments and how we make sure we continue to meet them in the context of leaving the EU.
Clause 8 is a very specific power, which will be available only where a breach of our current international obligations arises from the UK’s withdrawal from the European Union. It ensures that we will be able to continue to honour international obligations, which might otherwise be affected by our withdrawal, and it is key to ensuring that we can take our place on the global stage as a fully independent nation. On that basis, I hope that the hon. Members for Nottingham East and for Swansea West will consider not pressing their amendments.
I want to address amendment 345 in the name of the Leader of the Opposition. It is well intentioned but unnecessary. The power in clause 8 has a narrow and specific purpose, and can be used where our international obligations might be breached as a result of leaving the EU. World Health Organisation guidelines are not international obligations; they are used to inform air quality standards in international and EU legislation, but they do not, of themselves, form an obligation to be complied with.
The UK has a strong track record on protecting our environment, and in leaving the EU, we will safeguard and improve on that. The whole purpose of this clause is to ensure that we leave the EU with maximum certainty, continuity and control, and that, as far as possible, the same rules, laws and international obligations apply on the day after exit as on the day before.
Of course, some of the existing mechanisms that allow scrutiny of environmental targets and standards by Governments will not be carried over into our law, and that is why the Secretary of State for Environment, Food and Rural Affairs announced on 12 November our intention to consult on a new, independent statutory body to advise and challenge Government, and potentially other bodies—
I thank the Minister for rushing through his speech so that I get the chance to have my five minutes to talk about amendment 292.
Clause 8 allows Ministers to make any regulations to prevent or remedy any breach in our international obligations as we leave the EU, but it also contains a Henry VIII power allowing for those regulations to do anything that an Act of Parliament can do. That includes amending or repealing any Act of Parliament ever passed. It is the most extraordinary and unusual power. I was going to raise the Northern Ireland Act 1998, so I am grateful to the hon. Member for North Down (Lady Hermon) for getting the Minister on the record on that.
The Government have been very scant on the details about the sorts of international obligations that may be affected. They have also been unable to say—I was listening carefully to the Minister—why regulations under clause 8 can impose or increase taxation. We do not want to end up in a situation where the Government can raise tax-like charges by statutory instrument. That gives away the supremacy of this place on taxation. The “appropriateness” test is too broad, and it undermines the supremacy of Parliament. We cannot have taxation by the back door.
Crucially, I did not hear the Minister say anything about tertiary legislation. We have focused a lot on SIs—the secondary stuff. Tertiary legislation enables a new public body that needs to be set up, such as a chemicals body, to charge fees. This may not be controversial at first, but there may come a time when such bodies want to increase the fees, as happened when the Ministry of Justice wanted to increase probate fees by, I think, 1,500%. Why is there a double standard in clause 8 as regards secondary and tertiary legislation? We want tertiary legislation to be given the same parliamentary control and the same time limits as secondary legislation. My amendment 292 seeks to restore the supremacy of the House on financial matters.
I want briefly to deal with the environmental regulation that the Minister talked about. The Government currently have a “one in, three out” rule. Many of our environmental regulations come from international mixed agreements signed and ratified, as he said, by the UK and the EU; some are bilateral and some are multilateral. The Environmental Audit Committee has been looking at our progress in reducing fluorinated gases. These are very powerful greenhouse gases with a global warming potential 14,000 times more harmful than carbon dioxide. They are in commercial refrigeration systems, in our car air-conditioning systems, and in 70% of the 60 million asthma inhalers that we use in this country every year. Targets for reducing those gases are set and monitored by the European Union, but we are also a signatory to the UN framework, so it is a mixed agreement. We have just ratified the Kigali amendment to reduce F-gases by 85% by 2036. That agreement is monitored by the EU, so the Bill will convert the regulation into UK law and we will need new regulations.
The explanatory memorandum states that the new regulations may be subject to the Government’s “one in, three out” rule. We cannot have the Government making hundreds, if not thousands, of new regulations that get caught under that absurd administrative rule, so I want the Minister to assure the House that it will be scrapped. I have written about that as the Committee Chair, and Lord Henley has said that there is no clarity about it and no decision has been made. That has to change.
This is an incredibly important series of discussions. We need more information on the 759 international treaties that may fall on exit day, and I am glad that the Minister indicated that more information would be forthcoming. I want to vote for new clause 22 on the European economic area and the single market, so I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 22
EEA Agreement
“(1) No Minister may, under this Act, notify the withdrawal of the United Kingdom from the EEA Agreement, whether under Article 127 of that Agreement or otherwise.
(2) Regulations under this Act may not make any provision that would constitute a breach of the United Kingdom’s obligations under the EEA Agreement.
(3) Regulations under this Act may not amend or repeal subsection (1) or (2).”—(Heidi Alexander.)
Brought up, and read the First time.
Question put, That the clause be read a Second time.