European Union (Withdrawal) Bill

Lord Bilimoria Excerpts

Report: 4th sitting (Hansard): House of Lords
Monday 30th April 2018 Lords Chamber

[Lord Howard of Lympne]

If the noble Lord waits until I have concluded my remarks, I think he will be better able to form a judgment about how careless I have been.

Subsection (1) of the new clause provides that the Government may conclude an agreement only if the draft has been approved by the House of the Commons and has been subject to the consideration of a Motion in your Lordships’ House. The Minister may have something to say about the circumstances in which such a Motion might be considered. It is not a point I intend to dwell on, although there is clearly a possibility that your Lordships may vote not to consider such a Motion.

Subsection (3) of the new clause provides that a withdrawal agreement may be implemented only if it has been approved by an Act of Parliament, and subsection (7) provides that that Act must have received Royal Assent by the end of next January, so the new clause expressly contemplates a situation in which the Government have reached an agreement with the European Union, the House of Commons has approved that agreement, but your Lordships’ House, simply by delaying the passage of the Bill beyond next January, could defy not only the will of the people but the will of the elected Chamber of Parliament. If that would not provide a constitutional crisis, I do not know what would.

The new clause goes on to provide a prescription about what would happen if such a situation were to arise. It proposes that the negotiations should be taken out of the hands of the elected Government of our country and be decided on a resolution of the other place and the consideration of a Motion in your Lordships’ House. I had the great privilege of serving in the other place for 27 years—not quite as long as my noble friend, but almost—and I have the greatest respect for it, but it is not a negotiating body. I do not believe it has ever taken that role upon itself, I do not believe it wants it and nor should it have it. I need hardly add that if this new clause were to become law, the situation would arise that it would immeasurably weaken the Government’s negotiating position with the EU and would make our Government and our country a laughing stock.

The truth of the matter is that, while a great deal has been spoken about the House of Commons—my noble friend talked about the House of Commons—at the end of the day the House of Commons will have its say and the House of Commons will have its way. The House of Commons does not need to be given any guidance by your Lordships’ House as to how it should go about its business. There are many ways in which the House of Commons can achieve that objective, and the House of Commons will do so.

This new clause is thoroughly and fundamentally misconceived. I am afraid that it illustrates the appalling lengths to which die-hard remainers are prepared to go to achieve their aim, and I urge your Lordships to reject it.

[Lord Bilimoria (CB)]

My Lords, as an answer to what the noble Lord, Lord Howard, has just said, the noble Viscount, Lord Hailsham, said in moving the amendment that this was all about “Take it or leave it”. Is “Take it or leave it” a meaningful vote? Throughout Committee, the main answer given by the Government was, “We are implementing and executing the will of the people”, while every single day the press says, “Implement the will of those 17.4 million people”. But, as the noble Viscount said, “Leave, whatever the terms”—is that what the people actually said? Is that what is in the national interest?

At the heart of this issue is the fact that in the other place at the time of the referendum two-thirds of MPs, on all estimates, thought that the best thing for this country would be to remain, and right here in this House about 75% thought the same. Yet when the referendum took place, hundreds of those MPs’ constituencies voted to leave, so the MPs are caught in a trap. The confusion is whether they see themselves as delegates or representatives of their constituencies. Are they making these decisions in the best interests of their constituents and country or of their party? Are they managers or leaders? The difference between a manager and a leader is that a manager does things right but a leader does the right thing. Do they have the guts—the guts of the so-called mutineers such as Nicky Morgan, Ken Clarke, Dominic Grieve, Jonathan Djanogly and Tom Tugendhat, and I could go on—to stand up when the time comes to do the right thing?

We discovered in Committee that whether we were discussing borders, education or movement of people, no argument was made. The Government were like a stuck record, simply saying: “The will of the people”. The amendment would give MPs in the other place and this House the power to stand up to do the right thing for the country. The noble Lord, Lord Howard, talked about a constitutional crisis. What constitution do we have where a Government bully Parliament and say, “Take it or leave it”? It is Parliament that should be supreme, in the best interests of the people and the country. Thanks to this amendment, Parliament would have the ability to stop the train crash that is Brexit.

[Lord Howarth of Newport (Lab)]

My Lords, the noble Lord, Lord Howard of Lympne, is absolutely right to draw our attention to the constitutional dangers that lurk within the amendment. It goes too far to bind the Government.

I think it is time that we drew breath. We have had a very exciting couple of weeks but it is time to think about the respective roles of the Executive and Parliament and of the House of Commons and the House of Lords, as other noble Lords who have spoken have done. Parliament is not the Government and it should not try to usurp their role. Of course the Government emanate from Parliament and are accountable to it, the Government should be advised by Parliament and are invigilated and sustained by it, and if they lose the confidence of Parliament then they fall, but the Government are not the same as Parliament and Parliament is not the same as the Government. We have a separation of powers. The Government are the Executive, and Parliament neither can nor should act as the Executive.

It was improper and inept for the Government ever to suppose that they could bypass Parliament in dealing with Brexit. Of course there must be a meaningful vote, but it is for the Government to negotiate, listening all the time to Parliament—Parliament constantly proffers its advice—and then eventually to submit the deal that they have negotiated to Parliament for its approval or otherwise. You can call it a take-it-or-leave-it vote, but nobody could say that that is not a meaningful vote.

Dominic Grieve, someone for whom I have the greatest respect and the warmest regard, justified his amendment to Clause 9, requiring that the final terms of the deal should be approved by a statute, on the basis that it was essential to prevent the Government exercising the biggest Henry VIII power ever. That was an understandable and legitimate motive, but to require that the deal should be approved by the laborious process of statute seems to me to go too far in an inappropriate direction. Parliament cannot negotiate. Parliament certainly cannot negotiate by legislation or amendment. It cannot change the deal, it cannot bind the European Union. It can bind the Government in an excessively narrow straitjacket, and that would be an extraordinarily unhelpful thing to do in the national interest. The process of legislating such a statute would serve only to prolong the uncertainty about which everyone complains.

Amendment 49 would develop the Grieve amendment and take it further. It repeats the requirement for a statute already in Clause 9, but doubles up with the requirement for a resolution. It then goes further. Proposed new subsection (5) states that if the House of Commons does not approve the draft terms, the Government “must follow any direction” given by the House of Commons. That seems to me the most extraordinary provision. Of course, legislation routinely binds Governments for the future, but it does not tie their negotiating hand. It should not, specifically, tie this Government’s hands as they seek to perform this particular complex, sensitive, immensely difficult, crucial set of negotiations.

The resolution could say anything. It could say, “Go back to the negotiating table”. It could stipulate that the Government deliver what is undeliverable. It could rescind Article 50. It could call for a general election or another referendum. These are exceedingly important matters where the Government should listen to Parliament, but the Government should lead and Parliament should respond.

If we reflect on the relationship between your Lordships’ House and the House of Commons and our respective responsibilities, surely it is our responsibility to advise the House of Commons, to advise the Government. In the words of the noble Viscount, Lord Hailsham, it is to suggest, to argue, to explain. It is no part of this House’s responsibility to seek to manipulate the House of Commons or the Government, to seek to choreograph future proceedings of the House of Commons, and certainly no part of our responsibility effectively to pull the rug from under the Government.

If we pass this amendment and some of the others on the Marshalled List today, I fear that we shall be getting too big for our constitutional boots, and many of our fellow countrymen feel the same.

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[Lord Grocott]

That £39 billion is a lot less, of course, than the amount we would need to pay in if we remained in for a further 41 years—the figure 41, he may remember, is of particular interest to me.

The other thing I have noticed about so many of these discussions—I have to tie myself down and not jump up every time it is mentioned—is the psychic powers of the remainers, which I am really in awe of. Hardly any remainer I have come across does not know precisely why the leave voters voted the way they did. We keep being told that people definitely did not vote to leave the customs union. People definitely did not vote to leave the single market, we are told. I do not know whether that is true or not—I do not possess these psychic powers—but I can say as a matter of fact that we definitely did not vote to remain in the European Union. That is a certainty as a result of the last referendum.

People say it is not really a second referendum; they are different questions. One question remains on both the referendum we have had and the one that is being proposed. The option to remain is there, so if you did not vote first time to remain, you get a second chance to remain. You do not get a second chance to leave, in a straightforward decision. So I find it increasingly unconvincing that the motives of those seeking a second referendum are an ardent desire to recheck the views of the British public. I think that such an amendment, such an attempt to have a second referendum within two years of the first, is no less than what we all in this House know, remainers and leavers—it is an attempt to reverse the decision of the first referendum. That is unacceptable and we should vote against it.

[Lord Bilimoria]

My Lords, when the noble Lord, Lord Newby, spoke to Amendment 50, he spoke about a spell. I say to the noble Lord, Lord Callanan, that there is one reason why we need this amendment: as he made very clear on the last amendment, the Government are giving us the option of deal or no deal—to crash out on WTO rules. The noble Lord, Lord Butler, said that that was not acceptable. I ask the noble Lord, Lord Grocott, how it can be fair to give people a yes/no vote. The noble Lord, Lord Dobbs, compares it with the AV referendum: that was a very simple result; this is a yes/no, leave on any basis. There is no way that the people would have agreed to that on 23 June 2016 with four months’ notice. It is said that people know the reasons why they left with four months’ notice. We in this House are all in the thick of it, still learning almost two years later. The noble and learned Lord, Lord Brown, said we are all more informed. A year from now, on 29 March, people will be even more informed.

The Government have given people the impression that there is no other option. When I give speeches, such as the one I gave this morning at Imperial College, I ask the audience, if you were given a chance to remain, would you remain? They say, “Do we have a choice?” And all the hands go up saying they want to remain. Yet the Government are driving this Brexit juggernaut off a cliff. When it comes to the British people having a choice as to whether to go over that cliff, the Government say, no, you have no choice, you are like lemmings who will have to follow us over that cliff. Is it fair to the British public? Is this respecting the will of the people? I say that it is disrespecting the British people.

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[Baroness Humphreys (LD)]

My Lords, I was pleased to speak to a similar amendment in the name of the noble Earl, Lord Clancarty, in Committee, and I am equally pleased to support the amendment now. At this point in the evening, I do not intend to detain your Lordships longer than necessary, so my intervention will be short.

All that the amendment asks is that the Government, as part of the withdrawal process, negotiate a continuation of the EU rights that my generation has enjoyed for those under 25. The vital point at the basis of this issue is that the EU passport that we all hold is not just a passport, it is a visa. It is a right to live, work and study in any of the current 28 countries in the EU and to move between those countries at will.

The Government underestimate the frustration and anger that some young people feel at the removal of their rights to freedom of movement and, under Erasmus, to study abroad. On more than one occasion during debate today, Members of your Lordships’ House have referred to the divisions caused by the Brexit vote, but there is no greater potential division than that between the conflicting visions of our country’s future: our young people seeking to move forward in the openness of the EU and some older people seeking the comfort of the past.

Is it not time that the Government showed young people that they understand their concerns? The Government have recently been accused of institutionalised indifference on many issues. Perhaps the amendment affords them the opportunity to disprove that description.

[Lord Bilimoria]

My Lords, I support my noble friend Lord Clancarty on Amendment 60, and speak specifically on the Erasmus programme. I speak as a university chancellor and chair of the advisory board of the Cambridge Judge Business School. The Erasmus programme is 30 years old, and I ask the Minister whether we are to throw away 30 years of that wonderful initiative. Employers—I speak as one—value the Erasmus brand. Hundreds of thousands of British students have benefited from it.

Are we committing to staying in the Erasmus programme well beyond the transition period? Are we committing to it permanently? Otherwise, what happened in Switzerland could happen to us. When Switzerland voted to restrict EU migration, it was taken out of the Erasmus programme. It had to spend extra money to put a new programme in place. Do we want to go through all that?

The most important thing about the Erasmus programme is that it is for everybody. It covers a wide variety of subjects and involves 725,000 European students—a huge number—and Britain is one of the most attractive destinations. Will the Government keep their promise to maintain and protect all funding streams for EU projects in the UK? Most importantly, it enables students who would not otherwise be able to afford it to go and travel and study abroad.

I reiterate what has been said. This is about our youths—and when I speak to students around the country in schools and universities, 100% of them want to remain in the European Union. The least that we can do is to ensure that the Erasmus programme is open to them and not take their future away from them.

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Does the Minister have any comments about this? What is going to happen at the frontiers? We do not know—except that the electronics will probably not work. He may say that we are still in negotiations. I know that lots of civil servants are working very hard, and some of them pretty effectively, to try to find solutions. But the comment that I hear from them is that they cannot really make progress without political direction, of which there is very little. I am offering Ministers a face-saving option. If after two years they have not reached agreement, let us go for the single market. I beg to move.

[Lord Bilimoria]

My Lords, I put my name to this amendment and back up what the noble Lord, Lord Berkeley, has said. In today’s economy, business is integrated and transactions are global, with goods moving across borders every minute of the day. Our biggest customers are right on our doorstep in the EU—27 countries and half our trade. It is not just finished goods, but ingredients and components. In food and drink, my industry, I can give an example. Bailey’s Original Irish Cream is made in Dublin and goes across the border into Northern Ireland. It is bottled there, comes back into Dublin and is exported to the EU and around the world absolutely seamlessly.

Some 2.5 million lorries pass through Dover. How will we cope if there is any disruption over there? Some 70% of the UK’s food imports by value are from the EU, and 60% to 65% of agricultural exports are to other member states. Any delays on these goods, many of which are perishable, would raise food prices. Some 1.5 million trucks go through the Channel Tunnel. The list of border operations is so complex. What preparations have been made if there is to be a hard Brexit to put up all the infrastructure required, prevent any delays and have a frictionless border?

Some 69% of freight transport goes to the EU as lorry traffic. The FTA has spoken out very clearly for the whole industry. It represents 50% of the UK’s lorries and 90% of rail. It has warned very clearly of 15-mile queues at Calais if border checks are introduced. We need to remember what happened in 2015 with the French ferry workers’ strike. If trucks coming from the EU are treated like non-EU trucks, the ports will be in permanent gridlock. Does the Minister agree? The other aspect is Ireland. From Ireland, goods go to Europe across the UK. It takes trucks 10 hours from leaving Dublin to get to Europe. If they had to go around, it would take them 40 hours, with considerable disruption.

I conclude with a point made by the noble Lord, Lord Berkeley. Yesterday, in the Sunday Times there was an article in which a company boss said:

“We suddenly caught Brexit blight”.


The article says that:

“A wrinkle in international trade rules is scaring away companies in Europe from British suppliers”.


It talks about a Bristol-based company where the customers which used to give orders well in advance—in Germany and Scandinavia—are suddenly stopping the orders because of rules of origin. The supply chain is worried about this. The local content will not be of 50% value. With many industries such as the car industry, components that are made in the UK are well below 50%. There are companies here that just do not have the capability to move from under 50% to 50% or 60%. It will take many years to be able to have that capability domestically, and we will not be able to do it competitively.

The article concludes by saying that companies like this one in Bristol,

“will gradually be ‘evolved’ out of the supply chains of EU manufacturers that do not want the hassle of providing paperwork for components bought outside the bloc”.

It will, says the company,

“be death by a thousand cuts”.

That is what we are facing. We had a vote on the customs union in this Bill and it is critical because it marks the frontier between hard Brexit and a soft Brexit.

In the Financial Times recently, one leading British political analyst was asked to predict what would happen. He said that Brexit will not happen because there is no version of Brexit that can get a parliamentary majority. There will be no parliamentary majority if we cannot handle this particular situation in this amendment.

[Lord Liddle (Lab)]

My Lords, I rise briefly to support my noble friend and the noble Lord, Lord Bilimoria, on their remarks. We know that the Government do not have a policy on this issue. We can read in the Financial Times that there will be a great debate tomorrow. The Minister smiles, but he knows perfectly well that it is true that the Government have not resolved the question of what customs model they will go for. This is an extraordinary situation. It is now 22 months since the Brexit vote and yet the Government have not got a policy on the fundamental point of how we will make Brexit work. It is a failure of massive proportions on the Government’s part. I want to hear an apology to business from the Minister for the fact that the Government’s political divisions have basically led to a situation in which business is facing a serious cliff edge. They call themselves the “party of business”. What serious claim have the Benches opposite to be the party of business, given the way they have behaved since the EU referendum?

I also say to my own side that I fully support the amendment we passed on the customs union. I was greatly cheered up by it. It is a breach in this wall of stupidity that the Government have erected, but it is not a complete solution to the business problems that people have talked about. It does not solve entirely the problem of customs checks because of rules of origin and issues with agricultural produce and all the rest. It certainly does not solve the Northern Irish border problem on its own. It does not address the fundamental economic point that it completely neglects services—the dynamic part of our economy where our exports are growing, where we have a strong surplus and which is our economic future. This is a terrible, woeful neglect on the part of the Government of the key, dynamic, entrepreneurial sectors of the British economy. How can they claim to be the party of business?