Exiting the European Union: Sanctions

Baroness Laing of Elderslie Excerpts

Wednesday 19th July 2017 Commons Chamber

[Hannah Bardell]

I am grateful to the hon. Gentleman and think he may have been reading my mind, as will become clear from my next point.

If the UK Government cannot agree among themselves on a transition policy for Brexit and a deal, as we have seen this week with the vastly differing approaches of the Chancellor and the International Trade Secretary, I and others seriously doubt their capacity to design sanctions architecture, let alone agree on what and where those sanctions should be imposed. And even if they do, the effectiveness of UK-only applied sanctions will be severely diminished.

The UK Government’s own White Paper sets out, in pretty stark language:

“The UK needs to be able to impose and implement sanctions in order to comply with our obligations under the United Nations (UN) Charter and to support our wider foreign policy and national security goals. Many of our current powers flow from the European Communities Act 1972 so we will need new legal powers to replace these…It is not possible to achieve this through the Great Repeal Bill, as preserving or freezing sanctions would not provide the powers necessary to update, amend or lift sanctions in response to fast moving events.”

And events are moving fast; we have a short period, so the Government need to think very carefully and give us a response on that transition period.

Any new legislation must be clear about how these powers will be developed and implemented and, further, what infrastructure and regulation will look like to support those new powers. Additionally, the Law Society of Scotland has raised a number of pertinent points in relation to the UK Government’s White Paper. These points are significant because they highlight the complexity—as the hon. Member for Streatham (Chuka Umunna) has just said—and scale of the task at hand, not to mention just how many sectors and areas of competence will be impacted by exiting the EU, and the need for a new set of rules and regulations. It is clear that lawyers, accountants and consultants will be very busy over the next few years—and, no doubt, considerably richer. But what estimate have the Government made of the cost of training lawyers and accountants to deal with the new laws and regulations, and what provision has been considered for the teaching of the new regulations and laws at our universities, colleges and institutions? We need a workforce that will be ready to go when those new provisions arrive.

An interesting point about cross-border jurisdiction also arises on page 23 of the Government’s White Paper. The Law Society of Scotland is very concerned about this. The White Paper identifies special advocates as

“barristers in independent practice of the highest integrity, experience and ability, from civil and criminal practices. They are bound by the ethical standards of the Bar Council.”

I know that many in the profession would like clarity and assurances that special advocates should be able to be drawn from the ranks of not only the Bar in England and Wales but the Bar in Scotland and Northern Ireland, and from suitably qualified solicitor advocates in all those jurisdictions, but it appears that the UK Government have again—whether by accident or intent—failed to recognise at the most fundamental level that the devolved nations exist.

According to the Law Society of Scotland, the Government’s proposed additional power to seize funds and assets in order to freeze them appears to be unrelated to the withdrawal of the UK from the EU. This therefore seems like a curious thing to sneak in. Will the Secretary of State clarify why this has appeared at this juncture? It concerns me and, I am sure, others that the UK Government would introduce new legislation that is potentially unrelated to the UK exiting the EU. This is not good practice, and we need to understand the rationale behind it. It is clear that the UK Government are going to have very little, if any, time in which to do their day job as they deal with the enormity of Brexit, but they have some serious questions to answer on how they will manage and develop their sanctions policy. It is key to our reputation on the global stage, and to how we will work with the rest of the world.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

I call Mr Andrew Lewer to make his maiden speech.