European Union (Withdrawal Agreement) Bill

Lord Hain Excerpts

2nd reading & 2nd reading (Hansard): House of Lords & 2nd reading (Hansard)
Monday 13th January 2020 Lords Chamber

[Lord Hain (Lab)]

My Lords, this Bill opens the way for a Singapore-upon-Thames race to the bottom by deliberately removing the level playing field provisions designed to prevent the UK undercutting the EU. It also fails to protect our communities from the dangers of future land grabs on the health service from United States drug companies. Rather than Parliament taking back control, the Bill aims to destroy Parliament’s ability to hold the Government to account as the negotiations proceed.

The EU will remain the biggest, richest single market in the world right on our doorstep, with 450 million people compared to the UK’s 66 million. The EU accounts for half of UK trade but the UK accounts for less than one-tenth of EU trade. The UK risks losing not only its membership of the EU single market but also around 70 highly advantageous EU deals with other countries worth another 11% of our overall trade. The Government have been trying to roll these over but Japan, for example, has refused, confident that it can extract better terms from London on its own than it has already with the much larger EU bloc.

The Bill also removes EU protections for the environment, consumers and workers’ rights. By deleting these and other level playing field provisions, which the EU has indicated are essential for a deal, and discarding the opportunity under the latest withdrawal agreement for the UK and the EU to agree an extension before 1 July 2020, the Bill also brings back the real threat of a catastrophic “no trade deal” at the end of the year. The hard-line Brexiteers support such an outcome, but let them bear in mind that no country in the world trades on WTO terms alone without additional agreements, especially with their nearest neighbours.

In just 11 months’ time, and in the absence of a trade deal, the UK could find itself at the mercy of the EU regarding the bilateral trading relationship. The refusal of the US to confirm the appointment of judges to the WTO appeals court means that from 11 December 2019 the WTO can no longer adjudicate on trade disputes. This puts the world at risk of a free trade free-for-all in which the largest blocs can use their economic weight to do as they wish. So, if the UK felt that the EU was imposing vexatious trade barriers, for example, there would be no legal redress for the British Government through the WTO.

A Canada-style free trade agreement favoured by No. 10 means little or nothing on services, which make up 80% of the UK economy and 45% of our exports. The EU, with which we have a trade surplus in services, would have no incentive to grant significant openings to the UK in a free trade agreement because, under the WTO’s rules, it could then be obliged to make similar offers to all third countries with which it already has bilateral free trade agreements.

As the former President of the European Commission, Donald Tusk, made clear in 2018,

“the EU cannot agree to grant the UK the rights of Norway with the obligations of Canada”,

which is exactly what the “cake and eat it” contingent surrounding the Prime Minister seem to expect.

If the UK wants to reach a deal, we have to recognise that it will need to be ratified by the Parliaments of 27 individual EU member states, and some regional bodies too. Trade is about trade-offs, and in fishing, for example, the UK will have to grant continued access to UK waters if our fishing communities wish to maintain their lucrative access to selling into the European Union market, which is critical for the UK’s fish-processing industry. If regulatory divergence begins to occur, EU access would cease. EU producers, meanwhile, would continue to have unfettered access to the UK market in goods, where the EU already has a huge surplus.

The Prime Minister insisted that for goods moving to and from Northern Ireland and Great Britain, there would be

“no forms, no checks, no barriers of any kind.”

I am reminded of Nye Bevan: if the Prime Minister

“is sincere in what he is saying, and he may be, then he is too stupid to be a Prime Minister”.

I fear it is far worse than that, for there will indeed be checks and controls across the Irish Sea, with all sorts of dangerous uncertainties for the island of Ireland if there is no comprehensive deal at the end of this year or no amendment to the Bill as proposed.

European Union (Withdrawal Agreement) Bill

Lord Hain Excerpts

Committee: 1st sitting (Hansard continued) & Committee stage & Committee: 1st sitting (Hansard continued): House of Lords
Tuesday 14th January 2020 Lords Chamber

Moved by

[Lord Hain]

13: Clause 21, page 25, line 6, leave out “may” and insert “must”

[Lord Hain (Lab)]

My Lords, at the request of my noble friend Lady Ritchie of Downpatrick, who has to attend a funeral tomorrow, I wish to move Amendment 13 and speak to Amendments 14, 16, 17 and 20 appearing also in the names of the noble and right reverend Lord, Lord Eames, and the noble Lord, Lord Empey, and with the blessing, I know, of the DUP, Sinn Féin and the Alliance Party.

We all welcome the restoration of devolved Stormont government and wish the Assembly and Executive well in taking Northern Ireland forward to what we all hope will be a better and more stable future. I have always maintained that, where there is deadlock in the political process, as we have seen over the last three years so tragically, it can be resolved only when the British and Irish Governments work together in a focused and positive way. There are former Secretaries of State in this House who I think will not disagree with that. I particularly commend the way in which the current Secretary of State, Julian Smith, approached the outstanding issues, working closely with the Irish Foreign Minister, Simon Coveney, ably supported by the noble Lord, Lord Duncan, and the Minister in the Commons. The Secretary of State has brought energy and commitment to the negotiations that, sadly, his predecessors lacked, and he was doing so even before the political arithmetic changed with the election last month.

It is in the context of the restoration of the institutions in Northern Ireland and, more crucially, their prospects for long-term stability that I urge the Government to accept these amendments. After all, they achieve what the Government themselves profess to support: namely, no impediments to trade across the Irish Sea. The purpose of these amendments is to protect the Northern Ireland economy from the clear and inevitable damage that leaving the European Union in the hard Brexit way seemingly envisaged by the Government will otherwise cause. They are not delaying or wrecking amendments—nor are they the last frantic efforts of deluded remainers or remoaners to thwart the democratic process. They are essential damage-limitation measures, supported by all the political parties in Northern Ireland. Let us pause on that: all the political parties. How often do we see that? And joined by businesses and civic groups, too.

Amendments 13, 14, 16, 17 and 20 hang together as a package. Amendment 13 replaces “may” with “must” in Clause 22, Part 1C, and new Clause 8C in Clause 21 in order to stiffen the drafting of the regulations that will be made under these provisions of the Bill. Otherwise, the problem is that the protocol either places Northern Ireland in a good place or between two bad things, where it will have its largest internal sales market putting barriers up to it and it will not have genuinely unfettered access to the EU market. That will put businesses in Northern Ireland at serious risk of competitive disadvantage on all sides.

Amendment 14 ensures that, in accessing the market within Great Britain, businesses in Northern Ireland must continue to be able to sell their qualifying goods to Great Britain without tariffs, origin requirements, regulatory import controls, dual authorisations or discrimination in the market. Also, Northern Ireland businesses will enjoy these rights to free access regardless of whether they trade directly with Great Britain or via an Irish port or airport.

Amendment 16 would ensure that any relevant regulations for new requirements on goods traded to and from Northern Ireland to Great Britain cannot come into force without the consent of the Northern Ireland Assembly—and, furthermore, that there must be no additional charges or administrative costs for the businesses involved in this trade. The reason for Amendment 16 is that, in their own impact analysis, the UK Government note that exit summary declaration forms will be needed for goods moving from Northern Ireland into Great Britain for the purposes of security and safety, listing the type and weight of goods in order to keep track of what kind of imports or exports are crossing economic borders. The Government estimate the costs as ranging from £15 to £56 per declaration. This too will add costs and friction to the movement of goods. Businesses will need support to adjust to these new requirements. They will also need proper training to adapt to them, and of course any additional costs will inevitably be passed on to consumers, unless the Government ensure there are no such additional costs, which is precisely what this amendment does, and what the Bill does not do.

Amendment 20 requires the Government to develop mitigations to protect Northern Ireland businesses and consumers within the UK internal market. By mitigations we mean demonstrable steps to safeguard their position. But we are not being overprescriptive—I urge the Minister to note this point—as to how this is done. We are simply asking for effective mitigating steps to be delivered by the Government in the way they choose. What objection to that could there possibly be?

--- Later in debate ---

[Lord Hain]

My Lords, I congratulate the Minister on a beautiful response to the question put by the noble Lord, Lord Teverson. I must say that the skill with which he did it was admirable. I am grateful to all noble Lords who have contributed to the debate. The noble Lord, Lord Empey, made a truly excellent speech, the key message of which was that this is not a partisan issue. This point was reinforced by the noble Lord, Lord McCrea—he has not often praised me, especially when I was the Secretary of State for Northern Ireland, even though his leader did from time to time—so when the Minister consults with the Secretary of State and No. 10, can he make that point? We are not trying to re-fight a battle that dates from before the election; we are trying to resolve a problem that uniquely affects Northern Ireland. The point was reinforced by the noble Baroness, Lady Altmann, and the noble Lords, Lord Teverson and Lord Bruce, who put it very succinctly when he said that all we are asking is to put into law what the Prime Minister has promised. That is what it is.

My noble friend Lady Smith urged the Government to compromise, like the parties in Northern Ireland have compromised. Perhaps we can urge No. 10 to compromise. Your Lordships’ House has been put in a difficult predicament in this situation; it is like a sword of Damocles hanging over us. Unlike with other Bills, where we can make a logical and reasonable case, as we have done on Northern Ireland in recent times—I acknowledge that the Minister has been good enough to respond creatively, with the Government behind him—and there is then a bit of give and take, this does not even seem to be in the arena. It is as if we might as well not have this debate because the Government are not going to consider it anyway. I therefore urge the Minister to transmit in crystal clear terms what has been said right across the House in this debate. It is actually a question of trust, as a number of noble Lords said. I have tried to go into the detail in a reasonably forensic way, but it does not seem that what has been said in public by the Prime Minister—I am not taking a party-political pop at him because that is not what we are about this evening—actually reconciles with the facts on the ground.

I come to the Minister’s admirable summing up. To be perfectly frank, what he is really saying is, “Trust us because we are going to talk to the Assembly. It is going to be in business and that is a good thing. The Members can have their say and it will all work out on the day.” Well, there are certain brick walls here, and hard places and collisions between the two, so I am not convinced by that. I am not convinced that a process of sweet dialogue between the Government and the Assembly will necessarily solve these problems. The purpose of the amendment is to solve them, so that there will not be any costs on businesses and no impediments to trade between Northern Ireland and its brothers and sisters in the rest of the UK. That is what it is about. Therefore, I think that there is bound to be a sense of distrust if the Government are not willing to accept the amendment. As my noble friend Lady Smith said, if the Minister comes back and says that the Government would like to rejig the amendment to achieve what we want to achieve by using the expert help of his officials in the Box, of course we will look at that, because we want the same objective. Otherwise, we will be put into the position of having to consider a Division—which we do not want to do.

Can I just ask specifically: will there be direct Northern Ireland representation on the Joint Committee, to actually deal with this issue? Will there be direct input for the Executive and, sitting behind it, the Assembly, reflecting businesses? Will that be possible? Will the Minister clarify that point?

[Lord Duncan of Springbank]

I do not know the answer right now, but when I come back I will know the answer and I will set that out next week.

[Lord Hain]

I am grateful. As always, the Minister is very helpful.

We have a dilemma here. At the moment, we are intending to retable the amendments and we will have to decide what we want to do, and what the feeling of the House is. We all saw that the feeling in the Committee tonight, including on the Conservative Benches, was pretty unanimous that these amendments and the principles behind them are ones that the House wants to see.

Unless the Minister wants to add anything before I sit down—no? He is being diplomatic and possibly prudent in not doing so. But on that basis I will withdraw Amendment 13 in the hope that we will get something practical that is actually in statute on Monday or Tuesday before we consider this matter again.

Amendment 13 withdrawn.

European Union (Withdrawal Agreement) Bill

Lord Hain Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting: House of Lords & Report: 1st sitting
Monday 20th January 2020 Lords Chamber

At the end of the day, it would have been better if the Government had legislated on unfettered access at this time. Like the noble Baroness, Lady Hayter of Kentish Town, I feel that, in the main, the reasons for not doing so are largely political—obviously, Downing Street does not allow it, but maybe the noble Lord the Minister would like to do it. I would like to see a change of heart on the Government’s part to support our fledgling, new Northern Ireland Executive and underpin businesses and the local economy in Northern Ireland. I beg to move.

[Lord Hain (Lab)]

My Lords, I support the excellent speech of my noble friend Lady Ritchie of Downpatrick. I remind the House that I spoke at some length and in detail in Committee last Tuesday, so I will speak only briefly in support of Amendment 6 and do so with increased urgency.

Since last week’s debate on essential damage limitation amendments to the EU withdrawal Bill—I remind the Chamber that they have the support of the entire business community and, as the noble Lord, Lord McCrea, pointed out last week, not just cross-party but all-party support in Northern Ireland—the Chancellor of the Exchequer has confirmed what many of us had long believed: that the Government are hell-bent on an ideologically hard Brexit that could do untold damage to the small and medium-sized enterprises that make up the overwhelming bulk of businesses in Northern Ireland.

When he told the Financial Times last week that there will be no regulatory alignment with the EU after Brexit and insisted that firms must “adjust” to new regulations, the Chancellor blithely said that businesses have had since 2016 to prepare. However, businesses in Northern Ireland were not presented with the Northern Ireland/Ireland protocol until last November, just a couple of months ago. How on earth are small and medium-sized businesses, which are the cornerstone of Northern Ireland’s private sector economy, supposed to adjust in only 11 months to a unique and complex set of relationships with the internal UK and EU markets —and just when the Northern Ireland economy slowed last year because of a contraction in the private sector?

When the Secretary of State said in terms in the other place that the Assembly and the Executive should take greater responsibility for Northern Ireland’s economic and financial future, I doubt that many here, or indeed in Northern Ireland, would say he was wrong, but the Government cannot have it both ways. They cannot demand that and at the same time inflict serious damage on many private sector businesses through erecting obstacles to trade across the Irish Sea and through their hard Brexit policies.

As was stressed by speaker after speaker from all sides of the Chamber last week, these amendments are essential to protect the very businesses that the Government say they want at the core of Northern Ireland’s economic future. They are intended simply to put into law what the Government profess to support: that there should be no impediments to trade in both directions across the Irish Sea.

The Minister wrote to noble Lords offering what I am sure he hoped would be reassurance on the issues raised here, but we are not remotely reassured. To be frank—I say this as an admirer of the Minister—the letters were full of warm words and elegant waffle. The core message was, “Don’t worry. Trust us and it will all be all right on the night.” But business leaders and politicians in Northern Ireland do not want mere reassurance. They want action and they want it without delay, through either accepting Amendment 6 or the Government coming up with their own mechanism in law that will have precisely the same effect.

I have huge admiration for the Minister. I know that he is in a difficult position because No. 10 is flatly refusing to listen and accept amendments, but that is not acceptable. Businesses in Northern Ireland should not be sacrificed on the altar of government dogma and be forced to incur obstacles and charges when trading both ways across the Irish Sea.

[Lord Eames (CB)]

My Lords, I added my name to that of the noble Baroness, who spoke so eloquently on this subject this afternoon, for one reason: throughout my professional life, I have come to value the core of Northern Ireland life through its business community. In many cases, those businesses were small. They are the heartbeat of the Northern Ireland community. Given the sensitivities of our situation both politically and economically—politically because of the sensitive nature of reaching the recent agreement, which we all welcome—and of our geographical position, having on our shore what is soon to become the border between the United Kingdom and the European Community, there is no better word than “sensitivity” to be adopted regarding the wording of the amendment.

During the lengthy debate in Committee, I coined the phrase “the reality of reassurance”. Behind what has already been said this afternoon, that remains the key reason why we make a strong plea to Her Majesty’s Government to take seriously not just the amendment’s wording and technicalities but the motive behind it: the reality of reassurance. No one can tell how this will develop once Brexit is a reality. The noble Baroness quoted the letter that came to us from right across the business community, which is united in making a plea for this reality of reassurance. At this stage, I simply say this: I realise the difficulties faced by the Minister and I accept the sincerity of his position, but I urge the Government to realise that there is a lot more to this amendment than simply technical phrases.