Business of the House

Debate between Lord Hunt of Wirral and Baroness Hayter of Kentish Town

Thursday 4th April 2019 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I declare my interest as a member of the Constitution Committee. I would like to make a brief intervention. Thanks to the sterling efforts of the committee, our learned clerk and our legal adviser, Professor Mark Elliott, overnight we were able to produce a brief report, which I want to refer to, because it is mentioned in this amendment.

The report was very much a rushed attempt. In the early hours of this morning I sought to rewrite parts of it, but the clerk explained to me that, sadly, my rewriting had been blocked by the spam filter on his machine. Therefore, I thought I better just add a couple of words to explain. The Constitution Committee has always sought to advise the House on fast-track legislation. Indeed, there are one or two Members of the House who served on the committee when it produced the 15th report in the 2008-09 session, Fast-track Legislation: Constitutional Implications and Safeguards. I would like to see a little more reference during the course of this debate to the fact that we warned people that fast-tracking should take place only in exceptional circumstances. It behoves everyone in this place to demonstrate that these are exceptional circumstances.

We also sought to emphasise the need for effective parliamentary scrutiny. We set this out in our report. However, as a member of the Select Committee, I would have preferred far more time to get into more detail. I therefore refer the House to a brilliant analysis of this Bill by Professor Mark Elliott, Public Law for Everyone. Before we proceed any further, we should be aware that this is, in a number of respects, a defective Bill, and we have to be very careful how we proceed.

It was acknowledged in the other place by Oliver Letwin—the previous acting Prime Minister, before the noble Baroness, Lady Hayter, took on the role—that there were drafting difficulties. He explained that it did not really matter very much because these would be dealt with and considered,

“in the Lords stages of the Bill”—[Official Report, Commons, 3/4/19; col. 1064]

Therefore, we must ensure that we have enough time to look into those defects. Trying to take all the stages of this Bill in one day, which is what the noble Baroness would have us do, may lead to us enacting defective legislation.

I am very grateful to the Printed Paper Office for making available our report, Fast-track Legislation: Constitutional Implications and Safeguards. I hope noble Lords will look at it before we proceed very much further with the Bill. It is necessary reading if we are to undertake this unusual attempt to fast-track a Private Member’s Bill.

We identified a key constitutional principle, as set out on page 8:

“The need to ensure that effective parliamentary scrutiny is maintained in all situations. Can effective scrutiny still be undertaken when the progress of bills is fast-tracked, even to the extent of taking multiple stages in one day?”


We went on to say that another fundamental constitutional principle was:

“The need to maintain ‘good law’—i.e. to ensure that the technical quality of all legislation is maintained and improved”.


We then asked:

“Is there any evidence that the fast-tracking of legislation has led to ‘bad law’”?


We as a House have to ensure that we do not enact bad law as a result of fast-tracking. That is all I wanted to say.

As I explained in a previous debate, I object to the idea that there should be a second referendum when it was the second referendum that created this problem in the first place. I do not want to stray too much, but I was the chairman of the Conservative Group for Europe in 1975, and I fought hard in the first referendum and fought hard again in the second referendum. I say to every Member of the House, whatever their strong feelings on this issue, for heaven’s sake, please do not let us have a third referendum. Let us get this sorted out. Let us respect the result of the second referendum but make sure that we do so by passing good legislation.

[Baroness Hayter of Kentish Town]

I think it was in about 1975 that the noble Lord, Lord Hunt, and I first met, which just shows how long we have both been around.

European Union (Withdrawal) Bill

Debate between Lord Hunt of Wirral and Baroness Hayter of Kentish Town

Committee: 6th sitting (Hansard - continued): House of Lords
Monday 12th March 2018 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, we are very grateful to my noble friend for raising a very important issue. I know that the hour is late but I declare my interests as a partner in the law firm DAC Beachcroft in the financial services industry and as chairman of the British Insurance Brokers’ Association, known as BIBA. In the light of those interests, it will come as no surprise to the Committee to know that I spend a great deal of time talking to insurers and brokers, and many of them share the anxieties that have prompted my noble friend and the noble Baroness to put forward this amendment.

I think that all those who have spoken have welcomed the speech made by the excellent Chancellor of the Exchequer, with his determination to ensure that financial services lie at the heart of any new free trade deal with the European Union post Brexit. However, as the noble Baroness has just pointed out, some of the larger insurers have already begun to make provision for Brexit by relocating elements of their activities out of the UK to ensure that they remain in the jurisdiction of the EU—although I am still finding a strong desire and commitment to continuing the remarkable success story of the insurance sector in the UK post Brexit.

I have no time at all but I urge the Minister to give us assurances that committed engagement and genuine consultation with those affected will take place in a timely, orderly and constructive fashion. Insurers and their customers will be looking for reassurances that their legitimate interests will be protected during any changes in policy that are made or even considered during the transposition process. Obviously there is much more to say, particularly about the role of regulators, as my noble friend Lord Trenchard mentioned, but these are very important issues and I hope that the Minister will respond in a very positive way.

[Baroness Hayter of Kentish Town]

My Lords, I do not think that anyone who has read the excellent December 2016 report Brexit: Financial Services from our EU Committee chaired by the noble Baroness, Lady Falkner, will be under any illusion about the challenge that Brexit poses to this economically crucial sector of our economy. This evening we have heard of the needs both of those in the financial sector and of those who depend on it, and we have heard of one possible way forward, but the most important point is that something is needed urgently.

The British Insurance Brokers’ Association, to which we have just heard reference, the Alternative Investment Management Association, the ABI and TheCityUK have all come to me, and I am sure to other Members of this House, to raise their concerns about Brexit and particularly the wider implications for the legal sector and the insolvency sector and what that means for investors as well as for the more traditional City firms. Along the lines outlined by the noble Lord, Lord Carrington, TheCityUK has called for a bespoke market access agreement based on mutual recognition, regulatory supervision and co-operation, with, as we have heard, particular emphasis on mutual recognition and the enforcement of judgments.

In long-term contracts, legal continuity and certainty are vital for business, as we have heard, but also for consumers, as the ABI has stressed. Retired British citizens in nice warm areas such as the south of Spain need to know whether their annuities and pensions from London-based providers will continue after March next year, and indeed after December 2020.

The AIMA wants to see regulatory frameworks that enable managers to deal with any type of fund vehicle or account, as they now do, as they manage the savings and investments of pension funds and insurance companies. The British Insurance Brokers’ Association—100,000 people are employed in that industry, and they arrange 70% of all general insurance—says that it is “critical” to reach a transition agreement quickly and, following that, a mutual free-trade agreement.

The one word that I want to leave the Minister with is “urgency”, because insurance renewals are already being issued for annual policies renewable on 30 March next year, a date that I know is uppermost in his mind. Any policies running after 30 March next year would result in uncertainty over the legitimacy of that part of the policy that is effective after we leave. So we need these brokers to be able to ensure that there are no interruptions in customers’ cover, and that extends to whether we can be insured when we travel and when we drive our cars abroad, and to travel insurance if the EHIC ends—these are real things that people rely on day by day.

As we know, the UK is the world’s largest exporter of financial services to the EU, which is where I have to disagree with the noble Viscount, Lord Trenchard. He thinks that there is great hope somewhere else, but actually, for us to earn money in the EU and maintain all the customers we serve there, we must first prioritise establishing that we can continue with what we do so well there. Shoring up that business certainty through a formal agreement on regulatory equivalence or something similar is becoming ever more urgent.

We first started debating this report in the House in December 2016. We are now in March 2018, and I fear we are no clearer in knowing what the Government are doing. I hope that at this late hour, not just of the clock but of the calendar in moving towards when we leave, the Government will be able to provide a little more assurance than they have done thus far.