European Union (Withdrawal) Bill

Lord Cormack Excerpts

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

[Lord Wilson of Dinton]

The noble Viscount reinforces the point which I am trying to make. The Explanatory Notes explain that the power also extends to,

“altering Acts of Parliament where appropriate”.

We are talking about the power to make law and to amend existing law. This is the dream of tyrants through the ages. It is something which is repugnant to the history of this country and the development of our legal system. My argument to the Committee is that the House should lean as hard against it as it can, provided that does not get in the way of achieving the desired result of a functioning legal system. We should not leave leeway which allows Ministers to do things which would be policy changes. I am uneasy about the danger that policy changes could come through the use of the power.

When you try to marry 40 years of legislation with British law, there will be endless choices to be made: you could go this way; you could go that way. Policy is tied up in the interstices of quite small decisions about how the laws should be married together. We should lean against anything which encourages policy change and we should focus the Minister’s power exclusively on achieving a functioning legal system, without going wider. If the law as it emerges needs to be improved, it should be improved by separate legislation that goes through proper processes. We should give only the power that is strictly necessary from the point of view of the objects of this legislation.

Another point I draw to the Committee’s attention is the number of people who will be able to make and amend law. I am not a lawyer—I was 50 years ago, but I am not now—but if I read the Bill correctly, it gives the power to a Minister of the Crown, as defined in the Ministers of the Crown Act 1975. Section 8 of the Act says that a Minister of the Crown is anyone who holds,

“office in Her Majesty’s Government”.

I have not checked this, but my memory is—it used to be imprinted on me when I was working in the Civil Service—that you can have up to 109 Ministers in the Government, so 109 people are being authorised to make or to amend law. In addition, the Commissioners of Customs and Excise will be given the power to make law and amend law, subject to the restrictions. That is another seven people—a Permanent Secretary and a number of directors-general—being given this power which tyrants dream of.

In addition, I draw the Committee’s attention to where the Explanatory Notes say that the power could include,

“sub-delegating the power to a public authority where they are best placed to deal with the deficiencies”.

So we are talking about giving public authorities the power to make law without going through parliamentary processes and to amend law. What is a public authority? According to Section 14, “public authority” is defined by Section 6 of the Human Rights Act 1998. If you read that Section 6, which I will give in its entirety, it says in subsection (3) that,

“‘public authority’ includes … a court or tribunal”.

I ask the Minister: are we seriously proposing to give the power to make law to a court? This is constitutional territory which is completely novel. Paragraph (b) in that subsection says that “public authority” includes,

“any person certain of whose functions are functions of a public nature”.

The proposal before this Committee is that the power to make and amend law within the conditions set out in the clause could be capable of being given to any person certain of whose functions are of a public nature, which in essence is any public servant. I put it to the Committee: is this necessary or reasonable?

[Lord Cormack (Con)]

Without reference to Parliament.

[Lord Wilson of Dinton]

Is this reasonable without reference to Parliament, or to the lightest sifting procedure where any recommendations can be made?

I ask the Minister whether he has an estimate of how many people may be given the power to amend law and make law. I would be interested just to know the number. If you have so many people, possibly hundreds, given the power, you should restrict it as much as you possibly can, so far as is consistent with the objects of the Bill.

Why do I think that the phrase “the Minister considers appropriate” is inadequate? First of all, “appropriate” is a word which should be avoided as much as it possibly can. In my last jobs in the Civil Service, I was sometimes faced with proposals that the Minister should be able to do something “when appropriate”. I always reached for my red pen and struck it out.

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[Lord Beith (LD)]

My Lords, from this side of the Committee I shall speak to Amendment 244A, in my name, which comes from the Constitution Committee and was mentioned by the noble Lord, Lord Wilson, in his opening remarks. The amendment’s purpose is to provide a more objective test and a requirement for Ministers to state that they have applied an objective test. Should they have failed to do so, they become accountable for not having done so. That is the value of it. It is in no way exclusive of the series of amendments in the remainder of the group, almost all of which replace “appropriate” with “necessary”. I will come to that in a moment. I want to appreciate the words a few moments ago from the noble Lord who is the former—and much respected—chairman of the Constitution Committee. His contribution is one that Ministers really ought to note.

We are dealing with wording in this legislation that worries us enough in this context. However, noble Lords should be in no doubt that, if this wording remains in this legislation, subsequent debates will take place around the idea that, “It was included in the withdrawal Bill and there were some very serious issues raised in that, so it must be acceptable” and that it must be reasonable to use such a shallow test of appropriateness for very far-reaching statutory instrument powers. Numerous other Bills will come before us in the course of this Parliament which have statutory instrument powers in them, and this and future Governments will draw on the precedent of how this legislation is worded.

As to the distinction between “appropriate” and “necessary”, the suggestion I have heard that Ministers do not realise they are open to legal challenge is, I think, quite wrong. Ministers are well aware that they might be open to legal challenge, and that is why they prefer “appropriate” to “necessary”. It gives them a “plump legal cushion”—that wonderful expression of the noble Lord, Lord Wilson—behind which they can hide. It is just not good enough; we have to find better wording. If Ministers are unhappy with necessity, they must come up with something more effective. We find the word “appropriate” used in many contexts. It conjures to mind the sort of instructions for a day out that say “Appropriate footwear should be worn”. That clearly indicates to the person who has to make the decision that they have a fair degree of discretion—it could mean hiking boots or other firm-soled shoes, as long as it is not stilettos or ballet pumps. They have a choice. Ministers are desperately trying to preserve choice for when they bring forward statutory instruments under this legislation.

The problems of the statutory instruments are not confined to Henry VIII provisions, as the noble Viscount, Lord Hailsham, pointed out. There is the inability to amend any of these statutory instruments, whether they are Henry VIII in their impact or whether they impact merely on previous statutory instruments. The inability to amend them grossly weakens Parliament’s ability to deal with matters that would normally be in primary legislation.

I am not only sympathetic to the amendment that the committee itself has put forward, which has my name on it, or something like it, but I am also very supportive of the attempt to find a better word than “appropriate”. So far, at any rate, necessity seems the right provision.

[Lord Cormack]

My Lords, I have added my name to a number of amendments that delete “appropriate” and insert “necessary”. They are all in this group. I do not claim any particular merit for that amendment: the noble and learned Lord, Lord Goldsmith, is, I believe, the lead name on this amendment. The fact is, we have one thing in common. Whether is it “essential”, as my noble friend Lord Hailsham will doubtless seek to persuade us in a few minutes, whether it is “necessary”, used in the context described by the noble Lord, Lord Wilson, when he moved his amendment so admirably, or whether it is a bare “necessary”, I do not mind. I frankly have a slight preference for the wording of the noble Lord, Lord Wilson.

We are in a very sad place when, having been told that we were taking back control, what we are doing is bestowing control. Parliament is bestowing control—if this goes through—on the Executive. I have quoted before in your Lordships’ House the famous Motion moved in 1781, I believe, in another place by Colonel Dunning: “The power of the Crown has increased, is increasing and ought to be diminished”. Substitute “Executive” for “Crown” and that is what this is all about. I also think of the immortal words of my friend the late father of my noble friend Lord Hailsham, who talked about an “elected dictatorship”.

Are we really seeking to leave the European Union—which I believe is a foolish step—to bestow on the Government the power which Parliament should take? That is the fundamental question. We should not bestow the power on or allow any Minister—whether he or she be ever so high or ever so low, whether he or she be at the top of the 109 or at the bottom, it matters not—to change the law of the land, and then indeed extend it, as the noble Lord, Lord Wilson, pointed out in his admirable speech, to public bodies and to the courts. We live in a parliamentary democracy. Your Lordships’ House rightly has much less power than the elected House, but we can act as a check and a balance and as an encourager to those in another place. These are probing amendments tonight, of course, but I am confident that this will come to a vote on Report, and we should say to our colleagues in another place, “Do not give up the power which you exercise as representatives, not delegates, of your constituents, because if you do that, it will be a real nail in the coffin of democracy”.

I personally believe that a referendum is inimical to representative democracy. But, as we have said before, we are where we are. We are moving away from the European Union, but we must move away as a parliamentary democracy, where power ultimately resides not in No. 10 Downing Street, the Treasury, or in any ministerial office but in the Chamber at the other end of the Corridor. Your Lordships’ House has a particularly important role in stiffening the sinews of those at the other end of the Corridor. There is an enormous wealth of experience in your Lordships’ House, which was demonstrated by the noble Lord, Lord Wilson, this evening, and which would have been demonstrated, I am sure, with equal eloquence by the noble Lord, Lord Lisvane, had he been able to be with us. We in a sense must see ourselves as the servants of democracy, but with a duty to put some real strength in the directly elected House.

I hope that we will have a response from the Minister this evening that will indicate that he understands what this is about. He, of course, is one of the 109. He may be low down on the list, but he is there. Whether he is 109, 108 or 73, I know not and I care not—but he is there. I hope that at the very least he will repudiate any notion of exercising power that it is not for him to exercise. We have to address this issue, whether we think in terms of Henry VIII or Thomas Cromwell or Oliver Cromwell, all three of whom would have looked upon this as a marvellous mandate. We have a duty. Tonight we are probing, but there will come a night when we must vote if the response is not as it should be this evening.

[The Lord Bishop of Leeds]

My Lords, I add my voice to those who are expressing caution. I sympathise with Ministers. Somehow a balance has to be struck between the technical freedom and flexibility to deal with matters as they arise—that is a legitimate concern—and the constitutional questions that have been raised this evening. The words matter. The word “significant” is one of my pet hates, where people use it because they do not want to find a more precise word. You always want to ask, “Significant of what?” They probably mean, “It’s important” or “It matters to me”.

“Appropriate” is another one. It is a word that creates space when we do not want to be precise—but when you are dealing with matters of law you need precision. It seems to me that the very simple mechanism of changing “appropriate” to “necessary”, with some criteria by which it could be deemed to be necessary or unnecessary, offers the sort of balance that the Committee is looking for.

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[The Minister of State, Department for Exiting the European Union (Lord Callanan) (Con)]

My Lords, I thank noble Lords very much for what has been an excellent debate. I use the word “debate” but only one point of view has been expressed and I have heard the message from all sides. However, I shall address the issues under consideration.

I say, first, to my noble friend Lord Cormack that he has put an intriguing thought into my mind. I will speak to my officials first thing tomorrow morning to find out where I, as a Minister of State, come in this list of 109—I suspect more towards the bottom than the top but we will find out.

The noble Lord, Lord Wilson, asked me about the number of people who will be able to exercise this power without parliamentary scrutiny—a question that I suspect is almost impossible to answer. I think that the main issue is not the number of people but the number of limitations on the exercise of that power. The power is time limited and clearly limited in what it can be used for. It may only prevent, remedy or mitigate deficiencies in EU law, and of course secondary legislation is subject to well-established parliamentary procedures. Where legislative powers are sub-delegated to public authorities, this will always be subject to the affirmative procedure.

I am pleased to have the opportunity to revisit what is clearly a very important issue in the context of the Bill. The Government will place some additional draft examples of statutory instruments or parts thereof in the Library of the House. That is something that a number of noble Lords have asked for in meetings that I have had with them, so I will ensure that that happens—most likely tomorrow.

I have listened with interest to the many contributions today, and to the extensive contributions of the Constitution Committee, which I had the pleasure of speaking to this morning along with my colleague in the other place, the Solicitor-General. I have read the reports of that committee and of the Delegated Powers and Regulatory Reform Committee, which have very much helped to frame our thoughts on this issue.

As a number of noble Lords have said, both those reports go into great detail on the scope of the delegated powers. As many noble Lords will also be aware, they come out with quite different recommendations. As I said at Second Reading, we are approaching this matter in a spirit of collaboration. The Government are looking very closely at how the powers in the Bill are drawn and how they will be exercised, particularly in the light of the committee recommendations and developments in other pieces of legislation.

As the Constitution Committee notes, comparable arguments were made during the passage of the sanctions Bill through this House and a mutually agreeable position was found in that instance. That has clearly informed the committee’s recommendation and we are receptive to the arguments made in its report. I am confident that a mutually agreeable position will be found.

As I will explain in a moment, the Government do not see the DPRRC’s recommendation as workable. However, we would very much like to talk to noble Lords following the debate, with an eye to coming back to this issue on Report.

As noble Lords will appreciate, the situation that this Bill responds to is, quite simply, unprecedented. A vast amount of EU law is being transferred to our statute book, including thousands of EU regulations. As such, the programme of secondary legislation to ensure that this law operates effectively must match that. In the face of such a task, it has always been clear that the Government will need relatively broad delegated powers to deliver a functioning statute book. Indeed, the Constitution Committee outlined in its interim report that “relatively wide” delegated powers were inevitable.

I understand that there are noble Lords who have had concerns about delegated powers for some time, and the Government are keen to continue listening to suggestions in order to improve those areas of the Bill. That listening process started during this Bill’s passage through the other place, where a number of changes were introduced to reduce the scope and increase the parliamentary scrutiny of the delegated powers. However, we cannot significantly restrict the scope of these powers, which, it is acknowledged, need to be broad.

Let me deal directly with the concerns raised by the noble Lord, Lord Wilson. Much of the concern about the delegated powers focuses on the use of “appropriate” to describe the discretion afforded to Ministers when making regulations to correct deficiencies. In case there is some misunderstanding here, let me be clear: “appropriate” in Clause 7 does not give Ministers unrestricted discretion to correct anything that they may wish or like. Corrections must not be appropriate per se; they must be appropriate to correct the particular deficiency they are addressing. The threshold for ministerial decisions is set firmly within the context of those purposes.

I appreciate that there is a degree of subjectivity to these tests—but that is true of almost all tests, and it is important to acknowledge that there are limitations on the power. Parliament polices the Government’s interpretation of its vires to act through the mechanism of the Joint Committee on Statutory Instruments, which I have no doubt will take a keen interest in instruments under this Bill; and ultimately, as a number of noble Lords have pointed out, these tests are litigable in the courts. So we cannot responsibly remove “appropriate” from the Bill.

I will now delve into the detail of the various different permutations of amendments seeking to restrict the scope of the delegated powers. The first amendments I would like to discuss are Amendments 201, 243 and 245, tabled by the noble Lord, Lord Bassam, which attempt to ensure that Ministers have considered that exercises of the main powers are made for good reasons and are reasonable courses of action. These match the Constitution Committee’s recommendation, and a smaller group were added to the Sanctions and Anti-Money Laundering Bill.

Amendments 74, 117 and 139, tabled by my noble friend Lord Hailsham, seek to write into the Bill that Ministers’ consideration of the appropriateness of any exercise of the delegated powers must be made on reasonable grounds. This is the right type of approach in not altering the fundamental scope of the powers.

[Lord Cormack]

Is my noble friend saying that he has made his mind up—or the Government have made their collective mind up—on retaining “appropriate”?

[Lord Callanan]

If my noble friend will forgive me, I will discuss that in a second.

Ministers make their decisions on secondary legislation based on reasonable grounds in the normal course of events. The use of these powers will be subject to the usual public law principles designed to ensure that the Executive act reasonably, in good faith and for proper purposes. I accept, however, that noble Lords have principled and legitimate concerns and we will ensure that these are addressed and that the reasonableness of a Minister’s courses of action is made clearer. Given the views expressed today, I would like to engage in further discussions with noble Lords with a view to returning to this issue on Report.

Amendments 71, 72, 76, 77, 78, 79, 116, 118, 140, 229, 253, 254, 257, 258, 264, 265, 276, 277, 290 and 291, which were tabled by noble Lords including the noble Lord, Lord Lisvane—to whom I spoke yesterday and I understand why he is not in his place today—the noble Lord, Lord Foulkes and the noble Viscount, Lord Hailsham, seek to exchange “appropriate” for “necessary”, about which we have had a great deal of debate, in the main powers and schedules in which it can be found. I understand noble Lords’ concerns but, as I have stated, this would have a serious impact on our vital programme of secondary legislation to prepare our statute book for exit day. “Necessary” is a high bar to meet. The courts have said that the nearest paraphrase for “necessary” is “really needed”, but such a test would be too constrictive.

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[Lord Callanan]

I think I have made my position clear on that but, nevertheless, I also said that we are listening and endeavouring to satisfy the concerns of noble Lords.

Amendments 73, 119 and 141 tabled by the noble Viscount, Lord Hailsham, and also spoken to by my noble friend Lord Lang, meanwhile used “essential” rather than “appropriate” to limit the discretion of Ministers in exercising the delegated powers. This really is very similar to the amendments which propose the use of “necessary”. I think that a court would likely interpret the meaning of “necessary” and “essential”—in this context—in much the same way and, therefore, I will not repeat the arguments that I have already made.

[Lord Cormack]

I beg my noble friend to talk to his ministerial colleagues and think again, otherwise the Government will suffer the most massive, crushing defeat when this comes up on Report.

[Lord Callanan]

I said at the start that I am setting out a position, but I have heard the messages that came to me from all sides of the Committee and I very much take on board the point that my noble friend makes. I shall state again that, despite their breadth, these are not powers designed to deliver major policy changes and they can only be read in light of their purpose. For Clause 7(1), that is to “prevent, remedy or mitigate” deficiencies arising from withdrawal.

Amendment 244A, tabled by the noble Baroness, Lady Taylor, the noble Lords, Lord Beith and Lord Dunlop, and the noble and learned Lord, Lord Judge, touches on a point to which I will return to in more detail later, but I will stress now the risks of introducing additional legal uncertainty by creating new and untested definitions to the law. However, I am conscious of the need for transparency in this process and we will look to see how, in line with developments and other legislation, we can ensure that ministerial decision-making about the appropriate exercise of the powers is more transparent to the Committee.

Amendment 75, tabled by my noble friend Lord Hailsham, allows me the opportunity to expand upon the reasons why we are taking the correcting power and to build upon the arguments made in previous days of debate. Areas of our domestic law, such as those relating to EU obligations, will be redundant when we leave the EU. The Bills repealed by Schedule 9 are an example of this. Some noble Lords will consider that having provisions that do nothing on the statute book is not harmful. Indeed, the Easter Act 1928, which was never commenced, continues to sit on the statute book with no effect and causes no harm. My noble friend Lord Hailsham and the noble Lord, Lord Campbell, also argued that there is no legal recourse under the use of powers under Clause 7. That is not strictly correct. If the threshold set out in the Act is overstepped the regulations can be struck down by judicial review.