European Union (Withdrawal) Bill

Lord Green of Deddington Excerpts

Committee: 7th sitting (Hansard): House of Lords
Wednesday 14th March 2018 Lords Chamber

[Baroness Crawley (Lab)]

My Lords, I support my noble friend Lord Monks in his excellent introduction and other noble Lords with amendments in this group, which contains Amendment 145 in my name and that of my noble friend Lord Judd.

My amendment requires Her Majesty’s Government, in partnership with Parliament, as my noble friend Lord Monks would put it, to seek ongoing reciprocal arrangements in the field of consumer law. The consequence of this not happening would be consumer chaos in this country. It is a modest request, in the context that UK consumers are key to the prosperity of our country and integral to the economy. As we know, every month consumers spend £100 billion in the UK, and in doing so support UK businesses, manufacturers and employees. It is therefore vital that this Bill protects the rights of consumers into the future.

The Bill as it stands reveals the gaps left by the Charter of Fundamental Rights not being part of domestic law on or after exit day. One important gaping gap relates to Article 38 of the charter: the right to a high level of consumer protection. In the launch of its consumer charter for Brexit, which I attended this morning, the leading consumer body Which? called on government to maintain and enhance Britain’s vital consumer rights and standards, stating that those rights should be at the heart of the Brexit negotiations—negotiations of which, as my noble friend Lord Monks has said, we as a Parliament are at present spectators. We must ensure that Parliament is no longer a bystander.

Government reassurance is long overdue when it comes to consumer concerns about the uncertainty, risk and disruption of the Brexit process and the sheer lack of information coming out on areas such as food safety, energy bills, travel rights, the validation of aeroplane safety—as the representative from ABTA reminded us at the Which? launch this morning—and roaming charges. How will the Minister go about responding to those consumer concerns? What is his response to the list of consumer priorities that were set out this morning, such as the need to maintain the UK’s world-leading consumer rights framework? The consumer framework in this country is very much based on local government and on trading standards—and I am very proud to be a vice-president of the Chartered Trading Standards Institute. The lack of resources to local government questions the Government’s insistence that, post Brexit, they will lead a race to the top in consumer rights in this country, given that the consumer framework is so heavily based on a local government framework.

Ensuring that we maintain and incentivise food quality and safety standards is another priority, as is maintaining the supply of affordable energy. Monitoring and maintaining access to the EU’s common aviation area to protect flight choice and suppress travel costs are also priorities. Further priorities include ensuring that reciprocal rights are maintained, such as in the field of healthcare and the European Health Insurance Card, which is used by nearly 250,000 UK citizens every year; and protecting mobile roaming in Europe. All these are urgent priorities for UK consumers which I do not believe the Government have really focused on and addressed so far.

What strategy have the Government in place to maintain reciprocal rights for consumers? If the Government are unable to secure a deal, for instance on aviation post Brexit, what will happen to all those passengers who are already booking holidays beyond 29 March 2019? What happens to their rights to holiday refunds or to compensation? What Government messages have been communicated to people about travel uncertainty beyond Brexit? Both Lufthansa and Ryanair have recently warned that UK holidaymakers could face flight disruption as a result of Brexit.

Surely it should not be left to individual travel companies, who themselves are unclear as to what a post-Brexit scenario will look like and who, not unnaturally, are looking themselves to their own interests in these uncertain times. For instance, according to Which? this morning, Thomas Cook has changed its terms and conditions to state explicitly that it will not provide compensation and will also not reimburse expenses or cover losses if it has to change bookings, which could occur in the event of airspace closures. Thomas Cook’s Brexit clause places airspace closure—

[Lord Green of Deddington (CB)]

Is the noble Baroness aware that we are in this situation, which I agree is a serious one, because the European Union has declined to discuss any of these issues until there is an actual treaty dealing with the rights of EU citizens in the UK? That is the reason that none of this has been touched—and I agree that it is a very serious matter for many people.

[Baroness Crawley]

I thank the noble Lord for his intervention. We have said from the start that UK citizens’ rights and the rights of EU citizens in our own country should never have been used as a bargaining chip. We have said right from the start, particularly on these Benches, that that should have been sorted out even before negotiations began.

As I was saying, the Thomas Cook Brexit clause places airspace closure as a potential scenario alongside natural disasters. We know how they feel. The Chartered Trading Standards Institute welcomes the Government’s aim in the Bill to transfer all directly applicable EU law to ensure that there are no fewer protections on the day we leave the EU. However, it remains concerned that regulations and networks that require reciprocal action and co-operation from remaining EU states, as my noble friend Lord Brooke said, will not be easy to retain unilaterally. It offered the examples of the RAPEX system for EU product safety risks, the online dispute resolution platform and the consumer protection co-operation regulation that allows for cross-border enforcement of rogue trader practices.

Divergence from the current system of rules, regulations and protections offered by the EU single market inevitably brings uncertainty and costs to businesses and consumers. The Prime Minister said as much last week. UK consumers need to be at the heart of these ongoing negotiations and need certainty that their protections will not be diminished, that rogue trading practices emanating from within the EU will be tackled and that they can enforce their rights in cross-border transactions. What is the Government’s strategy for consumers post Brexit and will the Government accept that these amendments bring greater clarity and safety to consumers?

Finally, what is plan B if consumers are not able to see beyond next week’s transition agreement? One of the issues that came up again and again with consumer bodies that came to speak to us was what happens if next week we do not get a transition agreement. Many of them are already making plans. Many of them have made their plans. They need a plan B. What plans are there for collaboration post Brexit to ensure that standards of outcomes for consumers will be there when UK and EU law diverge?

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[Baroness Randerson]

My noble friend makes a very good point. The uncertainty is already having an impact on the space industry because aspects of it are moving abroad. The same applies to the automotive industry, where we have had such growth in recent years. The impact of customs arrangements on the industry will be so complex that it will not be able to import and export parts across borders during the manufacturing process as companies have been doing. People occasionally say, “Well, what you can do is produce all the goods in one country”. They make the point that it takes about five years to develop a supply chain in one particular process in one country. It is extremely difficult, nigh on impossible, to do that in the modern world.

To conclude, I meet dozens of representatives of businesses in the transport sector on a weekly basis. I am assiduous in meeting organisations and individual companies and going on visits in order to take the temperature of their views. I am yet to meet a single one who thinks they would be better off outside the EU, outside the single market, outside the customs union. They are, with a will, trying to prepare themselves for the worst, but they still hope for the best.

[Lord Green of Deddington]

Will the noble Baroness explain one point? She has set out a range of extremely important issues, as have other noble Lords. Clearly, a whole range of things is of extreme importance. I do not understand how this suggestion of putting all these issues into a mandate in order that, presumably, Parliament should take a view on it and then go to the European Union and discuss it can possibly work.

[Baroness Randerson]

The noble Lord underestimates the level of wisdom and expertise that sits within Parliament. The EU is managing its negotiations in line with the European Parliament. There is no way in which we need to adopt a different model; the supremacy of Parliament should remain.