European Union (Withdrawal) Bill

Lord Hunt of Wirral Excerpts

2nd reading (Hansard - continued): House of Lords
Wednesday 31st January 2018 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I declare my interests as set out in the register, in particular as a partner in the global commercial law firm DAC Beachcroft and as chair of the British Insurance Brokers’ Association.

As we all know, the purpose of a debate at Second Reading is to discuss the principles underlying a piece of proposed legislation. Rarely in my experience as a parliamentarian has it been more important for us to be clear in our minds about what a Bill is and what a Bill is not. This Bill is not designed to initiate Brexit, as my noble friend Lord Ridley so forcefully pointed out yesterday. It is a vehicle for dealing with the consequences of Brexit, and for maximising the opportunities we derive, while minimising the risks and potential collateral damage. As my noble friend Lord Hill of Oareford said:

“In some ways, it is quite a boring Bill”.—[Official Report, 30/1/18; col. 1388.]


But as my noble friend the Leader of the House stressed at the start of this debate:

“It is vital to a smooth and orderly exit from the EU… to honour the referendum result”.—[Official Report, 30/1/18; col. 1373.]


In the absence of the Bill, legal rights would inevitably be affected overnight, in a disorderly fashion, which would critically undermine the rule of law and almost certainly overwhelm our courts. Of course, much so-called EU law does not need the assistance of the Bill to remain in force. It has been passed in primary or secondary domestic legislation and does not, or does not exclusively, derive force from the EU treaties or the European Communities Act 1972.

I commend to the House last week’s report by the Constitution Committee, of which I have the privilege to be a member, and welcome the comments that have been made at various stages of this lengthy debate about our recommendations. In contrast to the hyperbole attendant on the release of our report, the possibly less exciting reality is that it provides helpful and positive suggestions to ensure the Bill does the job for which it is intended: helping to ensure Brexit can be made as smooth and painless as possible. It also potentially creates the basis for a consensus on how to make the best of Brexit. My noble friend Lord Strathclyde was right to advise:

“If the Bill is to be amended, then let it be done with co-operation and consultation between Back-Benchers and Ministers”.—[Official Report, 30/1/18; col. 1408.]


Such a consensus would greatly enhance our negotiating position.

In dealing with retained EU law, this Bill is necessarily origin-focused and content blind, which could have arbitrary, unforeseeable and, sometimes, undesirable effects. There must be a significant body of EU-derived law which the UK would have adopted in any event, in the same or very similar form. Obvious examples that have been mentioned are to be found in the equalities field and financial services regulation. The practical need for at least some so-called retained EU law post-Brexit does not, of itself, justify creating an executive correction power, still less prescribe the precise scope or form of any such power. We must ensure that any correction power is compatible with the vital principle that the Executive must be genuinely accountable to the legislature.

Many fear that one unintended consequence of Brexit could be the emasculation of the UK financial services sector. It is vital that the UK, in negotiating a new free trade agreement with the EU, ensures the unbroken maintenance of mutual market access for financial services, ensuring continuity of cover and protection. A suitable transition period will be vital, and so too will mutual recognition of prudential regulatory regimes. Both motor and travel insurance require special attention too. I hope we shall maintain a free circulation zone without reintroducing an onerous green card requirement. Like the noble Lord, Lord Crisp, I also very much hope this Bill will help enable the UK to maintain a reciprocal emergency health agreement with our friends in the European Union.

This Bill is but one part of a testing and complex process—a vital part, but one of many. The road ahead is uncertain and it will be challenging to us all. I believe, however, that our debates here in the next few weeks will show this House at its serious, erudite and constructive best.