Retained EU Law (Revocation and Reform) Bill

Lord Hacking Excerpts

Committee stage
Monday 6th March 2023 Lords Chamber

[Baroness Ludford (LD)]

My Lords, I will speak to the proposal that Clause 12 should not stand part, which is in my name and those of my noble friend Lord Fox and the noble Baroness, Lady Chapman. I will also speak to the proposal that Clause 13 should not stand part, and to Amendment 111, which would require consultation, reasoning, et cetera for proposed restatement regulations.

My noble friend Lady Humphreys quoted the powerful view of the Delegated Powers Committee that Clauses 12 and 13 should be removed from the Bill because they inappropriately delegate legislative powers and appropriate powers that ought to belong to Parliament and be achieved subject to specific primary legislation. That committee brought to our attention, or reminded us of, the delegated powers memorandum, which says:

“This power cannot substantively change the policy effect of legislation.”


The DPRRC says:

“We doubt whether this is correct. Where there is ambiguity—


allowing Ministers to make changes to resolve ambiguities is one of three factors that a restatement is supposedly able to address—

“as to whether policy A or policy B is intended and the legislative restatement emphatically resolves in favour of policy A, the restatement has … made a firm policy choice”.

That view of our committee makes sense. It invited us to ask the Government to explain why none of the law that can be restated under the powers in Clause 12 would instead merit being restated in primary legislation. I hope the Minister will do so in his response.

The committee also draws attention to the powers that Ministers have, I think in Clause 14(6), to reproduce the effects of the supremacy of EU law, the retained general principles of EU law and retained EU case law, to ensure that the restatement has the same practical outcome that existed previously. These three elements are the ones that are otherwise abolished by the Bill; we debated that today in relation to Clauses 3 to 5. So the Government want to bring back, under Clause 14(6), the power for Ministers to reproduce the effects of the things they are abolishing, to ensure that the restatement has the same practical outcome that existed previously.

The DPRRC comments:

“This power may give rise to significant policy questions”,


but they are given to Ministers to answer rather than Parliament. I add to that a suggestion that it will also create legal confusion, because, on the one hand, you have abolished these three elements—supremacy, general principles and retained rights—yet, on the other, Ministers can bring them back. I have not quite worked out how that is supposed to work.

My noble friend Lady Humphreys quoted the fact that the powers in Clause 12 are completely “open-ended”, with

“no requirement for consultation … criteria … or … pre-conditions”.

That explains our Amendment 111, which again seeks to repeat the elements we constantly introduce.

The other thing that Clauses 12 and 13 give to Ministers, in restating REUL in secondary legislation, is the power to use different words or concepts from the original instrument and to make any change considered appropriate. That is rather worrying, and requires the Minister to explain what is meant by “restatement” if the restated law will be different in concept from the original law. To what extent can different words be used before the restatement changes into a new and distinct law? It is no longer a restatement; because different words and concepts have been used, it becomes, in effect, a new and distinct law. When does it morph into a new law, having started off as a restatement? There is quite some confusion on that.

Finally, if I have understood correctly the email from, and blog of, the distinguished legal commentator Joshua Rozenberg, it appears that he has been highlighting the fact that the pensions of some 11,000 serving or former part-time judges were going to be abolished because they relied on EU law. But apparently the Deputy Prime Minister, the Secretary of State for Justice, announced that he was going to save these pensions and that there was no intention to grab them back from affected judges.

I presume that this is the first announcement we have had of what is to be preserved under the Bill. Perhaps the Minister could confirm that. Obviously, I think it is a good thing. I do not think that judges’ pensions, any more than former MEPs’ pensions, should be whipped away. I suspect the Minister might agree on that point. That is a good thing, but we are still fighting for confirmation on things such as water safety, air quality, product safety, employment rights and everything else. When are we going to hear about what is going to be preserved from those other areas of deep concern? I am very pleased for judges, and indeed gratified, but it seems quite odd that we have had an announcement about that but we do not know whether anything else is going to be preserved. Perhaps the Minister could enlighten us in his reply.

[Lord Hacking (Lab)]

My Lords, I support Clauses 12 and 13 no longer standing part of the Bill. Opposition to those clauses has been led by the noble Lord, Lord Fox, and the noble Baroness, Lady Ludford. I support them on the very simple premise that the Government are attempting to sweep all legislation, including primary legislation which creeps up on secondary legislation; in other words, the secondary legislation has been adopted as primary legislation.

Before I go further—and I think I have attempted to do this already—I would like to put right the misconception that the EU law coming into our country was all under the carpet, that it was not considered and endorsed by Parliament. I suppose the Government have not put it quite so colourfully, but they could well say, on that basis, “What’s all the fuss about? The EU legislation arrived under the parliamentary carpet, why are you making all this fuss now?”

I want to correct that misconception. I sat for a number of years on the EC Committee and then the EU Committee in the 1980s and 1990s. I must have had about 10 to 12 years sitting on those committees—it was the same committee but it was renamed when the EC renamed itself the European Union. When I was on that committee, we had very alert clerks and very good relations with Brussels. The result was that when a regulation that caused concern was being considered by the Commission, with great co-operation from the Commission we were shown the draft of that regulation, really in its final form, before it was introduced as a regulation. We would examine it. It happened on a number of occasions; I cannot count the number. Your Lordships’ European Committee considered in detail the regulation, took evidence, wrote a report and sent that report back to Brussels.

I do not want to fancy ourselves too much, but the House of Lords European Committee had a great reputation in Brussels. Of all the parliaments in the union, we were the most constructive. I suppose I have to include whatever the other place was doing. With our good relationship with the Commission, when the Commission read our report it was influenced and changed the drafting of that particular regulation.

Of course, of the many regulations that were brought through when we were in the European Union, I am referring to only a few, but it is an example of how we were involved in the creation of regulations in an influential way.

--- Later in debate ---

[Lord Lucas (Con)]

My Lords, I am much more a supporter of this bit of Bill than some, but even I am astonished by Clause 15(5), which seems to introduce uncertainty and immense delays in the process without offering any great benefit. After all, what we are talking about here is essentially declaratory legislation. It is the Government saying, “We are not going to increase the burden of regulation by what we do under this Bill”. It is a political promise. It will, by and large—unless the Government chose to commit suicide, which is always possible—be delivered before the next election, so there is no benefit to be gained from this declaration. The Government will do it anyway and they will make the changes they wish to make, but the Bill introduces huge uncertainties.

I go back to my previous intervention when I queried the letter that we got as a result of the first day in Committee, which I think misinterpreted the way this subsection works. It is clear to me that, in deciding whether you are allowed to deregulate, you have to look at all the previous regulations made under this section within that subject area and decide whether your particular regulation plus all those adds up to something deregulatory.

It is going to get challenged in judicial review. If you give a water company a couple of hundred million quid fine for dumping turds in the Thames, you will find that its lawyers look at opportunities. Through this section we have introduced so much vagueness, such widespread uncertainty, that whether the regulation is in any way valid can be questioned at enormous length—including, as the noble Baroness, Lady Chapman, says: what is the subject area? Has the Minister got it right? Should it have been narrower? Should it have been larger? What is the right way of measuring these things, of all the things that can be taken into account in regulatory burden? Have they been weighed correctly?

It is total apples and pears mathematics anyway. How on earth do you summon these things to produce a single-digit answer? There is no formula in here as to how you can weigh an obstacle to trade and innovation against an administrative inconvenience. There is no way you can use this clause to arrive at a safe answer. The Government will never know—because of Clause 15(5)—whether any legislation that they have passed through Clause 15 is valid. It will be open to endless challenge. Because of that, in deciding whether to bring forward regulations under this clause, civil servants will have to go through the most enormously detailed and tiresome exercise to discover whether they will be able to make this balance work. That must add hugely to the delays.

I entirely appreciate what my noble friend on the Front Bench said on our previous day in Committee: that the Government want to get on with this and that he has his suspicions—which I hope do not embrace me—that there are people who do not want him to get on with it quite as quickly as he would like. I want these things to happen with speed and accuracy but the work that will have to go in to satisfy Clause 15(5) is huge, and an enormous diversion of effort away from the purposes of this Bill.

As the noble Lord, Lord Clement-Jones, pointed out, the only way of avoiding it is to introduce some whacking bit of deregulation smack in the middle of the most important subject areas, such as—let us take the environment since that is something I am heavily involved in—some enormous bit of environmental deregulation; then you know that you are safe because the rest of it cannot add up to excessive regulation.

We have been promised that that is not going to happen, in any segment of the Bill, so that is not open to the Government. They will have to weigh these little changes, pluses and minuses, in detail, every single time—to achieve what? As I said, to achieve nothing, because all of this is totally in the Government’s control. They can choose whether a particular instrument increases or decreases the regulatory burden and they will do it all within their term in office. There is absolutely no net benefit at the end of the day for all the work, difficulty and uncertainty of this, except that it will reduce the chances that my noble friend will achieve what he says are his objectives.

Of course, I am well used to getting things wrong in this House, and it may well be that I have here. In that case, I have Amendment 134, which mimics Clause 15(5) and says, “If you’re going to do this and we’re going to have declaratory legislation, then let’s do it for the environment”. Let us put in this Bill the promises the Government have made in front of us in this Committee about their environmental legislation, and then we can all be comfortable and spend the rest of the decade challenging their interpretation of that.

[Lord Hacking (Lab)]

My Lords, I want to draw attention to two paragraphs in Clause 15 to which there has not been any reference in our Committee. Indeed, I do not think there has been any reference to them since Second Reading, but concern was certainly raised then about Clause 15(4)(c) and (d), and it is those that I now want to address.

We should remind ourselves that immense powers are vested in the Minister under Clause 15. Subsection (1) allows them to

“revoke any secondary retained EU law without replacing it”,

while subsection (2) allows them to

“revoke any secondary retained EU law and replace it with such provision as the relevant national authority”—

that is, the relevant Minister—

“considers to be appropriate and to achieve the same or similar objectives.”

That is a power, without reference to Parliament, resting entirely in the hands of the Minister.

I now turn, more precisely, to Clause 15(4)(c) and (d). I shall read those paragraphs out to your Lordships. When replacing revoked secondary EU law, the Minister has the power to

“create a criminal offence that corresponds or is similar to a criminal offence created by secondary retained EU law revoked by the regulations”,

and, in paragraph (d), to

“provide for the imposition of monetary penalties in cases that correspond or are similar to cases in which secondary retained EU law revoked by the regulations enables monetary penalties to be imposed”.

It has been a cardinal feature of our law that the creation of criminal offences and the penalties that arise from the breach of those offences rest entirely in primary legislation. If, hidden under some carpet, there have been EU regulations that create a criminal offence or monetary penalties, then I am ashamed and embarrassed. But for the Government now to seek powers to replace them—again, without putting that before Parliament—is another wrong. My simple contention to your Lordships is that two wrongs do not make a right.

[The Earl of Lindsay (Con)]

My Lords, I shall speak to Amendments 121 and 123 in my name and that of the noble Baroness, Lady Crawley. At Second Reading I welcomed the opportunity created by the Bill to review, improve and update a wide-ranging tranche of important legislation. However, I expressed some concerns about process, and one of those is the constraint that I believe Clause 15 imposes on improving and updating existing legislation. That constraint is also a concern to the Chartered Trading Standards Institute and Which?, among others. Here I should declare an interest as the president of the CTSI, my predecessor in that role being the noble Baroness, Lady Crawley.

The principal constraint I am referring to has been well articulated by the noble Baroness, Lady Chapman, the noble Lord, Lord Clement-Jones, and others: Clause 15(5) —namely, the proposed requirement that any changes to retained EU law should have an overall effect of not increasing the regulatory burden. I say immediately that I am a long-term advocate of better regulation. Over the years, I have served on the better regulation commission and various other bodies advising government on what better regulation looks like and the framework for its development and oversight. I fundamentally believe that regulation should be avoided wherever there is an effective alternative and that, when there is no alternative, it should be designed so that it achieves its desired effect with the least possible burden.

--- Later in debate ---

[Baroness Neville-Rolfe (Con)]

There is a balance here. What we have got are powers that allow us to make changes, such as the example that I gave, which will improve the state of regulation. There may be a bit of an extra burden at the margins, but if you are bringing regulation into a new area, which I think is what we are talking about, in my opinion—and I am not an expert in this particular area—that might be a case for primary legislation. Of course, we are about to have further primary legislation in the digital area in the coming months.

[Lord Hacking (Lab)]

I thank the Minister very much indeed for sitting down. The Minister did not quite answer my cardinal point that it is well-established in our law that all criminal offences, and all penalties arising out of those criminal offences, are part of primary law, not secondary law. That means that, if there are EU regulations that are creating criminal offences and penalties, they are no more right than the current proposal that Ministers will now do it. Both are wrong.

[Baroness Neville-Rolfe (Con)]

The point I was making is that we are not creating new offences with these provisions. I will look further at Hansard, but I think that what I said was right and not a cause for concern—obviously, there were penalties attached to Section 2(2) and so on, in my experience.

I need to move on. Amendment 121A was tabled in the name of the noble Lord, Lord Whitty. As I made clear in relation to the previous amendments, the restrictions to the powers set out in subsections (5) and (6), combined with a non-exhaustive list under subsection (10), will help the UK to establish a more nimble and innovative approach to seize Brexit opportunities. Furthermore, the ability for the powers to act on assimilated law after the sunset date will enable the Government to have sufficient time to undertake necessary reform. However, the Government agree with the principle that adequate limitation should be in place on the exercise of powers. We have sought to ensure the powers are restricted in their use and are available only in a time-limited window—this ends on 23 June 2026.

In the same spirit, Amendment 123, tabled by the noble Earl, Lord Lindsay, seeks to remove the non-exhaustive list in Clause 15(10). Let me again assure the Committee that the requirement not to add to the overall regulatory burden has been drafted in a manner which will allow the relevant national authority to determine how best to achieve the desirable policy outcome.

I turn to Amendment 134A, in the name of my noble friend Lord Lucas and pick up on the comments of the noble Baroness, Lady Ludford. Honourable Members—sorry, I should say noble Lords. I think I need to pay 50p for any such mistakes; I am sorry about that. As outlined by my noble friend Lord Benyon on day two of Committee, the Bill will not alter our commitments to the environment. The Minister made it clear in his speech that the default position of Defra is to retain EU laws. This will allow us to keep protections in place, providing certainty to businesses and stakeholders, and to make reforms tailored to our needs. The Government also recently announced the environment improvement plan, on 31 January 2023, which sets out comprehensive action that the Government will take to reverse the decline in species abundance, achieve our net-zero goals, and deliver cleaner air and water. I hope this will help reassure the Committee that the Government will not be trashing the kind of protections that we want to continue and improve. There will also be a further opportunity to discuss the environment in a later grouping on Wednesday.

Lastly, I turn to Amendment 118A—it was the last amendment to be tabled so I have come to it last—for which I thank the noble Baroness, Lady Thornton. Her proposed criteria include a requirement to share the draft instrument with the Equality and Human Rights Commission, and for the commission to provide an assessment setting out the potential legal impact on human rights and equalities, including in relation to the Equality Act 2010 and the Human Rights Act 1998. As such, no replacement provision could be made under Clause 15(2) and (3) unless the Equality and Human Rights Commission had confirmed that there was no negative impact as a result of the proposed draft instrument.

We fully intend to maintain the UK’s leading role in the promotion and protection of human rights and the rule of law. We have a long, proud and diverse history of freedoms and we will ensure that our international human rights obligations continue to be met. The powers to revoke or replace are important cross-cutting enablers of retained EU law reform in the Bill. Clause 15 has been purposefully drafted to be broad in scope, and we have sought to ensure that there are important safeguards in place. This amendment would restrict the ability for the powers under Clause 15 to be used to undertake important REUL reform, so we do not believe that it is necessary.