Queen’s Speech

Lord Desai Excerpts

Tuesday 15th October 2019 Lords Chamber

[Lord Desai (Lab)]

My Lords, it is a great honour to follow the noble and gallant Lord, Lord Craig. I shall not speak on what he spoke about, because I have no expertise there.

I will speak about what is likely to happen in the next three or four days with Brexit. I have said before that, while I voted remain in the referendum, I believe that, if there was a majority vote for leaving, we should leave. The first time I spoke on this issue, on the Monday after the referendum, I gave the example of the feminist movement, which has said, “No means no. What part of the word ‘no’ do you not understand?” Well, what part of the word “leave” do people not understand? Leave means leave.

It is up to Parliament to have worked out the precise legislative details and negotiations of that task. As I have also said before in your Lordships’ House, the deal that Theresa May negotiated was a very good deal—or at least there was no better deal available in town. Parliament should have approved it, rather than rejecting it somewhat perversely several times. However, we are where we are.

I might be completely wrong—and I see that the noble Lord, Lord Kerr, is in his place, so I speak with some trepidation—but I believe that Boris Johnson has introduced a certain logical distinction to the Northern Ireland problem, and it is worth thinking about. That logical distinction is between the common market and the customs union. It is an attempt to say that Northern Ireland will follow common market rules, but the problem is about the customs union and maintaining the free border. Obviously, we do not know precisely what deal is being negotiated right now, but I guess that what is being said now is that, so far as the customs union problem is concerned, legally and formally Northern Ireland would remain part of the UK customs union and therefore would leave the EU customs union. Be that as it may, however, Northern Ireland could be made a free economic zone and, with mutual agreement, could be allowed to deviate from the written rules.

This is where the problem is: it is difficult to legally nail down all the details of what is and what is not allowed. In this, I follow what the noble and learned Lord, Lord Mackay of Clashfern, said: if there were an agreement in principle before 31 October that some sort of free economic zone would be admitted by both sides, the details could be worked out during the transition period. I am not a lawyer and I have not negotiated, but, if there is trust and good will on both sides, we have 18 or 21 months to work out the legal details of what rules will and will not apply and whether inspection will be necessary. If there is trust, one could say that there could be minimal inspection on this matter and so we can press on.

The second problem relates to consent—a more difficult problem than the customs union. The problem of consent has been deeply embedded in the politics of Northern Ireland for the last 100 years, through mutual mistrust on the two sides as to which side will vote. There, I believe that the proposal for a decision every four years—although I do not know whether that is still being proposed—is too fragile. If I had the choice, I would say that at the end of the transition period—something like December 2021—there should be a referendum in Northern Ireland on whether Northern Ireland should stay in the free economic zone or whatever the arrangement is. Each of the two sides—Protestants and Catholics—should have a separate majority for approval, so neither side would have a lock on the decision, which would stand only if there were a majority in both communities. If that form of consent were adopted, it would be a good arrangement that would be likely to endure.

These are all speculations and we do not know what will happen, but if the Government were to bring such a proposal by 19 October, I dare say that I would rather have it adopted by Parliament than kicked into the long grass. The difficulty with kicking something into the long grass, according to the Benn Act, would be that it would not be the last time that it was kicked into the long grass.

[Lord Berkeley of Knighton (CB)]

Some while back, the noble Lord made a very fine speech about trade and setting up new trade arrangements. As a complete innocent in all this, I was very interested. Does he still have the concerns that he expressed about the amount of time it takes to set up new trade deals?

[Lord Desai]

Yes. I believe that people are mistaken if they promise or think that setting up a free trade agreement is an absolutely simple act: you pick up the phone and call somebody and say, “Hey, let’s have a free trade agreement”. Free trade treaties actually take five years to negotiate—and they should take that long because there are very serious issues at stake. Our negotiations with the European Union might take slightly less time than that, but with America, or even with the Commonwealth, it will take a long time. Nobody should assume that the Commonwealth is panting at the other end for our attention. I have good reason to believe, having talked to people in India, that they are more interested in the EU than they are in the UK, because they know which market is bigger. They are not stupid. As someone said, they do not really have as benign an opinion of the Empire as we have—cricket or no cricket. We should not believe our own fake news.

I am sorry that that was such a long answer. But, as the noble Viscount, Lord Ridley, said—and I said before him—once the uncertainty of Brexit is over and people know the nature of the beast, the British economy is so resilient and innovative that it will recover, perhaps within six or eight quarters, and resume its prosperous path.