European Union (Withdrawal) Bill

Lord Bassam of Brighton Excerpts

Committee: 5th sitting (Hansard): House of Lords
Wednesday 7th March 2018 Lords Chamber

Moved by

[Lord Bassam of Brighton]

51: Clause 6, page 3, line 33, at end insert “subject to any agreement under subsection (6C)”

[Lord Bassam of Brighton (Lab)]

My Lords, I rather hope that the modest amendments in my name do not take the House two hours to deliberate over. They focus on a narrow set of issues relating to pending cases.

Amendment 62 would allow our domestic courts, subject to the terms of the withdrawal or transitional agreement, to refer cases to the CJEU after exit day if the course of action arose before exit day. Amendment 61 would require the Government to obtain from the CJEU and then publish a list of pending cases referred to domestic courts before exit day. Amendment 64 changes the definition of retained EU case law to include case law relating to pending cases referred to the CJEU before exit day.

These amendments were drawn from the Constitution Committee’s excellent report on the Bill and essentially aim to deal with two issues: first, pending cases in domestic courts that might have been referred to the CJEU and, secondly, pending cases already lodged with the CJEU before exit day. In the first instance I am really asking for the Government’s assurance that, in any withdrawal or transition agreement, they will seek to clarify whether domestic courts can continue to make reference to the CJEU in relation to cases that began before exit day. I can see that there has to be a cut-off point for references but it is the timing of that point which concerns me. What criteria will Ministers apply and how will these be written into the agreement in such a way as to guarantee, and not undermine, procedural fairness and access to justice?

It may seem that this is a small or insignificant matter but, given the wide range of issues that the court considers, I think not. After all, it looks at everything from trademarks to intellectual property rights, workplace rights and even the distribution of EU funds. Given that cases started before the Prime Minister triggered Article 50 are likely to be treated differently from those which followed it, it is surely important that principles of fairness and consistency enter into any agreement which the Government can sign.

The second type of pending cases, dealt with in Amendment 64, will be those that are already with the CJEU. In another place, the Solicitor-General argued that these cases would simply continue. That is fine as far as it goes but, as the Constitution Committee pointed out, the Government intend to provide for these pending cases to be covered in the withdrawal agreement and implementation Bill. But what happens to those cases if there is no deal? Would it not make sense to have a saving provision in the Bill saying simply that any case that is with the CJEU is determined to be treated as contributing to pre-exit case law, and in turn forms part of retained EU case law?

The Constitution Committee’s proposal that the Government should produce a list of cases on exit day that would be treated in this way made very good sense. To my way of thinking, that is a logical way of handling quite a complex set of legal issues, which are obviously well beyond my sort of competence as a non-lawyer. However, I hope that the Minister can satisfy my curiosity and set out how the Government intend to proceed. I also hope that he can satisfy the Constitution Committee, which I thought had a rather neat solution to the problem. Pending cases are of great value and will be of great interest to colleagues. I am hopeful that the Government can satisfy my simple concerns and provide us with an explanation that works. I fear that we will otherwise end up with something of a case law muddle. I beg to move.

[Lord Goldsmith (Lab)]

My noble friend is absolutely right that this is not a small or insignificant matter. It is an important one with rule-of-law implications. The starting point, as he explained, is his proposed Amendment 62 which, if agreed, would add a new paragraph (6C), the purpose of which would be to encourage the negotiation of an agreement that cases can continue to be referred to the CJEU by our own courts after exit day. That would relate to new cases where the cause of action arose prior to exit day. This is logical because the important point is about whether the full remedies currently available to litigants, potential litigants and, importantly, our courts remain until we leave, while the law of the EU remains in place.

Of course, being able to refer such cases depends on an agreement, the very agreement that my noble friend’s amendment would make it an objective to negotiate. We will not be able to refer cases to the court in Luxembourg after exit day, except by agreement with the EU in such an agreement. But he is also right that there is a risk—although we hope very much that it will not happen—that if we end up without a withdrawal agreement, there would need to be legislation enabling this to continue to take place. So the principle of the amendments seems entirely right, and he is right to say that this was dealt with by the Constitution Committee at paragraphs 150 and 153 of its excellent report.

Perhaps I may refer to what the committee said in paragraph 153, having made the point that my noble friend has identified:

“We recommend that, irrespective of any implementation bill, pending cases are dealt with in the European Union (Withdrawal) Bill. We further recommend that rulings on cases that have been referred to the CJEU before exit day are treated as pre-exit case law—such that they form part of ‘retained EU case law’—and that the Government publishes, on exit day, a list of all such cases”.


The middle part of that, on what the significance is of,

“rulings on cases that have been referred … before exit day”,

is dealt with in a later amendment. But, as he has said, the requirement that the Government should publish a list of all such cases is dealt with in these amendments. He is right to say that the Solicitor-General in another place referred to the importance of knowing, at least as I read his remarks, what those cases are.

It seems that there has to be a justification, although I can see none, for depriving litigants and our courts of the ability to refer cases to the CJEU. It is important that noble Lords are clear on the fact that that does not mean sending cases to the CJEU for it to decide; it is for that court to determine questions of interpretation, as the treaty currently provides, although the interpretation given may in fact then decide the case. Our own courts would then take the interpretation provided by the European court and apply it to the case before them.

I look forward to hearing what the noble Baroness or the noble and learned Lord, depending on who will respond to the debate—forgive me, of course it is the noble Baroness the Minister—will say to my noble friend.

--- Later in debate ---

[Baroness Goldie]

I thank the noble and learned Lord for his point, but I am afraid my response is going to be slightly less encouraging for him. The position of the Government is that we do not agree that new cases should be initiated post exit, even when these refer to pre-exit causes of action, because it would lead to an uncertain environment. It would be impossible to predict for how long the European Court of Justice would continue to issue judgments in respect of the UK. That, in the opinion of the Government, would strike at the underlying purpose of this Bill, which is to try to achieve a snapshot—to use that phrase again—as at the date of exit.

[Lord Bassam of Brighton]

I am grateful to the Minister for her response. She partly satisfied my concern, but not wholly. I do not really think it is satisfactory that the cases that will be floating around in the ether will be left with the degree of uncertainty that she has suggested may be the case. The fact that the legislation that is going to cover this point will be left until the final Bill—the transition and withdrawal Bill or whatever it is finally called—does not satisfy me greatly. I think that will leave uncertainty for litigants in cases that could be incredibly complicated. I am rather worried that this issue is going to get caught up in the Government’s general dislike for the CJEU. My recollection is that this is one of Theresa May’s red lines: she does not like the CJEU and therefore part of taking back control is getting rid of it. We have got news for the Minister dealing with this: it is going to take the UK some time to extract itself from CJEU processes. The quicker the Government wake up to that fact, the easier it will be for us all to deal with it. In becoming more realistic in their approach to the court, the Government will give some greater certainty as to how we intend to proceed in future.

While I am happy to withdraw my amendment for the moment, I may come back to this at a later stage, because our legal system and litigants require greater certainty. This is not necessarily the small issue I dreamed it might be when I came across it in the Constitution Committee’s excellent report. I am grateful for the debate we have had, but I am not so grateful for the answer. We will probably require a bit more from the Minister at a later stage. I beg leave to withdraw my amendment.

Amendment 51 withdrawn.