European Union (Withdrawal Agreement) Bill

Lord Hannay of Chiswick Excerpts

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

[Lord Hannay of Chiswick (CB)]

My Lords, it is always a pleasure to follow the noble Lord, Lord Boswell of Aynho. I followed him for a number of years as a member of the EU Select Committee, his chairing of which was remarkably valuable. I am delighted to do it again today. Since my contribution to this Second Reading debate on the withdrawal agreement Bill is on the critical side, I wish, to avoid any possible misunderstanding, to emphasise that I respect the convention that this House does not attempt to frustrate a measure which has figured in the manifesto of a Government who have obtained an overall majority at a general election. We should not, therefore, seek to amend the Bill in any way that would prevent the withdrawal agreement being ratified by the UK in time for Brexit to take place on 31 January.

Nor do I intend to take up much of the time of the House speculating about the credibility of the Government’s objective of concluding an agreement on the new relationship with the EU by the end of this year, to which it has now shackled itself. It may—I suspect it will—turn out to be more of a gambit to win votes than a realistic possibility. Time will tell us soon enough which it is, but I hope that we are not going to be treated in the latter part of the year to a re-run of the “no deal is better than a bad deal” mantra, which is no more likely to squeeze concessions out of our EU negotiating partners than it did in 2017, 2018 and 2019; it is every bit as likely to inflict disproportionate damage on this country as it was then. I note, moreover, that, while the Government are tying their hands in domestic law to not seeking an extension of the transitional period beyond the end of 2020, they are busy ratifying in Brussels an agreement which contains precisely that option. A rum way to proceed, one might think.

I doubt whether anyone would now contest that the May Government made a fundamental error by accepting the EU 27’s sequencing of the negotiations as soon as they began in the summer of 2017, relegating the future relationship to a non-binding declaration after the divorce settlement was agreed. Many noble Lords spoke out against that in this House and privately to the Government, including the noble Lord, Lord Bridges, whose speech I followed with the greatest interest. So let us not repeat the error now by accepting that this year’s negotiations should be focused on trade in goods alone. Of course it is important to achieve duty-free and quota-free trade in goods, but that is now no more than 20% of our economy. Going over a cliff edge into no deal on other matters at the end of 2020 would be hugely damaging for trade in services, which is 80% of our economy; for data processing; for the mutual recognition of professional qualifications; for co-operation on science and research; for maintaining regulatory equivalence; and for the instruments which underpin our internal security and the fight against international crime. I hope the Minister will be able to assure the House that, when negotiations open this spring, they will cover the whole range of issues and not just exclusively or principally trade in goods.

Three words which we will inevitably hear a lot of in the context of these negotiations on a new UK-EU relationship are “level playing field”. They are embedded in the documents that we are being asked to help ratify, even if attempts have been made to reduce their prominence. There will be no ducking them once the negotiations get under way. The concept is an integral part of any free trading relationship between large developed economies in close geographic proximity to one another. If noble Lords doubt that, look only at the agreements the EU has with Norway or Switzerland or, for that matter, at the newly revamped US-Canada-Mexico agreement or even the Trans-Pacific Partnership. That concept was also at the heart of the campaign, led by Margaret Thatcher and Arthur Cockfield, to move on from a tariff-free and quota-free European Community, still festooned with non-tariff barriers and border checks, to the frictionless trade we have today. How we give practical effect to that concept, those three little words will determine the nature and the benefit to us of the new trading relationship. The Government’s views on that remain a mystery, but there will be hard choices to be made this year.

There are plenty of other lacunae in the Bill which could do with being filled in, many of them highlighted in the excellent report by the EU Select Committee. We are promised separate legislative provisions, ensuring that we do not slip below EU standards on the environment, labour and social rights. How secure will they be and when will they be tabled? One of the biggest gaps is the role of Parliament in mandating and overseeing the new relationship negotiations, to which many Members have already alluded in this debate. Are we to find ourselves, yet again, negotiating with an EU whose mandate is endorsed by the European Parliament and whose every step is overseen by that body while this Parliament is left groping around in the dark? Can we really not manage to guarantee access for unaccompanied minors seeking asylum when they have family members here already?

It is reported that the Prime Minister would like to see the back of the term “Brexit”. I am not sure he is likely to succeed in that, nor indeed that it is desirable that he should do so. We are all, on both sides of this argument, going to have to come to terms with the realities of Brexit. We are going to be spending the whole of this year speaking about it. I hope there will still be some sensible consideration of that matter. There are important policy choices to be made in this legislative programme and in these negotiations.

[Baroness Berridge (Con)]

My Lords, I hate to interrupt, but the noble Lord has spoken for six minutes 48 seconds and the advisory speaking time is five minutes. I would thank him for concluding.

[Lord Hannay of Chiswick]

The noble Baroness got me in the middle of my last sentence. I am happy to conclude by saying that we should not treat Brexit as something we would rather not talk about or pretend does not exist, because it will have important consequences.