European Union (Withdrawal) Bill

Lord Keen of Elie Excerpts

Committee: 5th sitting (Hansard): House of Lords
Wednesday 7th March 2018 Lords Chamber

The noble and learned Lord, Lord Wallace of Tankerness, said that this is a “no-brainer”. I have to confess that, at that moment, my noble friend Lord Beecham said to me that he thought the noble and learned Lord was describing the Government. However, I hope the Government do have brains and will find a way to amend this Bill so that we do not have to amend it once it is an Act, in order to make in law an assurance that has already been given.

[The Advocate-General for Scotland (Lord Keen of Elie) (Con)]

My Lords, I am pleased to be able—I use that term advisedly—to respond to the issues raised in the context of these amendments. Given the scope of the contributions, I will perhaps begin by touching on one or two points that have been made by noble Lords in the debate.

The noble Lord, Lord Foulkes, referred to the content of the joint report and quoted, among other things, the phrase,

“the Agreement should also establish”.

The noble and learned Lord, Lord Wallace of Tankerness, did likewise, and referred to the passage about the bestowal of rights that will come with the conclusion of the withdrawal agreement. The noble Lord, Lord Haskel, referred to Michel Barnier’s recent draft—quite accurately, if I may say so. The noble Baroness, Lady Ludford, pointed out that the European Parliament will have to agree to the terms of any withdrawal agreement. That is self-evident.

In other words, these matters are prospective. Why are they prospective? I do not want to be overly technical, and I do not believe that I will be, but we begin with the duality principle of our law. That means that we enter into international obligations at the level of international law and they have no direct impact on our domestic law. For example, the withdrawal agreement will be an international treaty entered into by the Executive. We then implement or bring the rights and obligations of that international treaty into domestic law by way of domestic legislation of this Parliament. That is the duality principle: you have international law and you have domestic law, and you can only have the domestic law once you have the international treaty, because it is from the international treaty rights and obligations that you allow the domestic rights and obligations to be brought into our domestic law. What we have at the present time is a joint report from December of last year. We acknowledge that.

[Lord Foulkes of Cumnock]

It is not a treaty.

[Lord Keen of Elie]

It is not yet a treaty, if I can anticipate the noble Lord, Lord Foulkes, because the position of the EU has been, quite rightly, that there is no agreement until everything is agreed. This has been a staged process. We believe that it is important that we were able to achieve the first stage and that we were able to achieve consensus. It is perhaps better to use the word “consensus” here rather than “agreement”, which can be confusing and sometimes misleading. We have achieved consensus in a number of important areas and, as we carry that forward, we proceed into the negotiation of what will be an international treaty.

As we have said before, once we have that international treaty, we can then draw down from the rights and obligations of that international treaty into domestic law by virtue of the fact that we will bring forward a withdrawal agreement Bill for scrutiny by this Parliament.

[Lord Adonis]

Can the noble and learned Lord explain to the House the difference between consensus and agreement?

[Lord Keen of Elie]

One has to be careful in the matter of language. We are at one with regard to the first part of what we want to do in the context of withdrawal, but we do not yet have an agreement that is binding in law with the other EU 27. For example, going forward, and during the subsequent negotiations, the EU may come and go as to the terms of the joint report. Indeed, we saw some indications of that when it came out with its draft recently, where issue was taken with the way in which it expressed some aspects of the joint report, particularly with regard to Northern Ireland. I appreciate that, if you want to construe the term “consensus” in that way, it involves “agreement”. The reason why I am trying to move away from “agreement” is that some see the word and infer that there is some legally binding concept. That is not yet what we have. We have a joint report and, therefore, we have consensus. We are moving on to the overall negotiations on what will ultimately be an international treaty.

[Baroness Hayter of Kentish Town]

We all hope that this agreement, or whatever word it is, is fixed soon, but it could be quite late. We may not have the withdrawal Bill until sometime next year and it could be that we are due to leave a month or so afterwards. This part of the Bill affects individuals more than businesses and they will not know whether they can go to court until it is fixed—we may not get Royal Assent until a month or two before we leave. Is that really a good way to treat individuals?

[Lord Keen of Elie]

With respect to the noble Baroness, businesses affect individuals, so it is not appropriate to try to draw a distinction between citizens’ rights and businesses in that context. The right to work involves the right to maintain a business in various countries; you cannot simply draw them apart in that way. As regards regards timing, of course we are concerned to ensure that we achieve a withdrawal agreement sooner rather than later. That is why these negotiations are under way. If perchance no agreement is achieved—and I am not aware of anyone who wishes this, although others will perhaps assert the contrary—we will have to look at how we then deal with matters in the absence of that international agreement.

[Lord Wallace of Tankerness]

I am grateful to the noble and learned Lord and I hear what he is saying about the duality principle. Can he conceive of any circumstances in which the consensus reached between the United Kingdom and the European Union on the way in which we should treat EU citizens in the United Kingdom and United Kingdom citizens in the EU would not be taken forward or would fall apart? Can he see any circumstances where that might happen?

[Lord Keen of Elie]

At the present time, no, but we are only now undertaking the detailed negotiation of the withdrawal agreement. It may be, for example, that the situation of UK citizens in Europe will alter during the course of those negotiations. It may be that the European Parliament will take a different view on how the rights and interests of those UK citizens in Europe should be approached. The noble and learned Lord will recall that, at an earlier stage, there were some suggestions that the rights of UK citizens in Europe would be limited to the member state in which they were resident at the time of exit. There are all sorts of possibilities and I am not going to indulge in an analysis of those possibilities—we are concerned with achieving certainty. We have achieved, by way of the joint report in December, an expression of joint opinion about where we are going, with regard not only to the rights of EU citizens in the United Kingdom but also to the rights of UK citizens in the EU. Of course we want to bring that in to the final withdrawal agreement, in order that we can then draw it down and implement it in domestic law.

[Lord Cormack]

My noble and learned friend is being very honest with the Committee, but in a way that gives me some cause for alarm. He has made it absolutely plain that, at the moment, there is no guarantee. Would it still be possible—I believe that it would—for this Government to give and enact in Parliament a guarantee such as this House voted for at the time of the debates on the Article 50 Bill?

[Lord Keen of Elie]

With respect, no, my Lords, because we are not in a position to guarantee that which has been arrived at in terms of the joint report. For example, we cannot by ourselves guarantee the rights of UK citizens in Europe. To try to dissect the joint report and say, “We’ll take one piece out and leave another piece in”, is not a way forward in the context of an ongoing international-level negotiation. It is not the way in which this Government would proceed in that context.

[Baroness McIntosh of Pickering]

My noble and learned friend is talking in the context of this being an international treaty that has to be transposed into UK law, but surely the amendment addresses the issue of the supremacy of European Union law, which citizens of the EU currently rely on when they live in this country. I thought that the purpose of the amendment was to make sure that those rights continued to exist and would be clarified. That is all that we asking in the Committee today.

[Baroness Ludford]

My Lords—

[Lord Keen of Elie]

With great respect to the noble Baroness, I think that I must respond to my noble friend Lady McIntosh.

Again, that argument rather misses the point, because what we have at the moment is a belief on the basis of the joint report that rights of EU citizens in the UK may be referred to the Court of Justice of the European Union after Brexit, but that is not finalised; it is not yet contained in an international treaty agreement.

[Baroness Ludford]

We have always understood that we cannot unilaterally guarantee in the context of what is now happening an agreement of two parties. What was said from the very beginning, immediately after the referendum, was, “Give a unilateral guarantee and then we can with almost 100% certainty expect full reciprocity”. That was always what was suggested.

[Baroness Ludford]

Yes, I would say to the sedentary noble Lord.

[Lord Keen of Elie]

With respect to the noble Baroness—who I think invited me to drop all the mire; I am not sure what I am supposed to do about that—the expectation of reciprocity is something that we hope to achieve during the negotiation, and that is ongoing.

[Lord Patten of Barnes (Con)]

My Lords—

[Lord Keen of Elie]

Perhaps I may make a little progress.

The noble Baroness, Lady Ludford, also raised the question of settled status. We are intent on putting in place provision for settled status, which can be done pursuant to regulations made under the immigration legislation, in particular the Immigration Act 1971. We plan to open that application process on a voluntary basis in late 2018 in order that people may begin on it. The noble Baroness suggested that it was inappropriate to have an application process and went on to suggest a light-touch process. I suggest that we have an efficient and effective process from the perspective both of the applicant and of those who have to process it.

The noble Baroness also raised the question of arrivals during the implementation period and the need during the implementation period for those arrivals to register. Again, the final outcome as to the rights and obligations of those who arrive during the implementation period will be the subject of negotiation. We hope to take that forward in due course.

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[Lord Wigley]

I am grateful to the noble and learned Lord and I am following what he is saying. Is he in fact confirming that there will be two classes of citizen in Northern Ireland: those who hold Irish citizenship as well and will be able, if there is a border, to cross it totally freely and thus into the rest of Europe, and a second class of UK citizens in Northern Ireland who will not be able to do so?

[Lord Keen of Elie]

No, my Lords, there will not be two classes of citizens. Let us take a simple example. If I hold USA citizenship and UK citizenship, I can pass between the UK and the USA because I am a citizen of both countries. If I am a citizen of the UK and a citizen of the Republic of Ireland, I can pass between the two countries because I am a citizen of each state. It is not a case of classification; it is simply a matter of status.

[Lord Foulkes of Cumnock]

Will the noble and learned Lord clarify a point raised earlier by the noble Lord, Lord Wigley? What is the position of citizens in Gibraltar?

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[Lord Keen of Elie]

Gibraltar is an overseas territory whose people hold UK citizenship. However, if they do not retain citizenship of another EU country after Brexit, they will not be EU citizens.

[Lord Foulkes of Cumnock]

As I understand it, they can get a Spanish passport if they so wish, although I do not think that many of them do. Will they continue to be citizens of the United Kingdom and will they be eligible also to get EU citizenship?

[Lord Keen of Elie]

This seems to confuse a number of different issues because the parallels are the same as those in the Republic of Ireland and Northern Ireland. If you are a UK citizen in Gibraltar and you are also entitled to apply for and be granted citizenship of Spain, you will then hold dual nationality or dual citizenship, and as a citizen of Spain, for as long as it remains a member state of the EU, you will enjoy the right to EU citizenship. It is no different from the position in Northern Ireland and the Republic of Ireland. In the same way, the noble Baroness, Lady Ludford—perhaps referring to something she may have read in the Daily Mail—talked about people applying for citizenship of Malta in order to ensure they can maintain EU citizenship. This is how it happens, but the fundamental point is that you cannot be a citizen of the EU unless you are a citizen of a member state. That is written into the treaties.

It may appear—and it will almost certainly appear to the Chief Whip—that I have digressed slightly from some of the amendments; he will be watching. I just seek to touch on some of them. I hope I covered in my opening remarks some of the points made. Amendments 160 and 170 were tabled by the noble Lord, Lord Adonis, and Amendment 202 by the noble Baroness, Lady Smith of Newnham. Unfortunately, she was not here to speak to it, but it was referred to. As I have indicated, at the end of the day, we will have to conclude the negotiations in respect of the withdrawal agreement treaty and then draw it down into our domestic law. Tying Clause 9 to a particular outcome is not going to assist that.

The noble Earl, Lord Clancarty, moved Amendment 210. Again, I hope I have set out the Government’s position on this. We appreciate what we have achieved by way of the joint report, and we go on to the detailed negotiations in the hope it will effectively mean that we can confirm in domestic law not only the rights of EU citizens in the United Kingdom, but the right of UK citizens in the EU.

The noble Lord, Lord Haskel, moved Amendment 211, which details a requirement to keep equivalence with the EU on rights and protections. Again, this is prospective. We are addressing it in the course of negotiations and we hope to achieve it in many respects. In my view and in the view of the Government, it would not be appropriate to bring this into our domestic law.

Finally, we have Amendments 49 and 52, which I hope I have gone some way to addressing so far. The Bill aims to provide a stable and certain domestic statute book on exit day. That is its point, irrespective of the result of the negotiations and of any final agreement with the EU. Of course, once we achieve a final agreement, we fully appreciate that we are going to have to draw it down into our domestic law. Parliament will have an opportunity to scrutinise it.

[Lord Liddle]

If, as I am sure we both do not want, the withdrawal agreement is not reached, what then happens to EU citizens’ rights? Do we not have the opportunity now to guarantee them, whatever the case?

[Lord Keen of Elie]

With respect, if there were no agreement, then it would be for this sovereign Parliament to decide what it was going to do about that in domestic law. We have already made clear expressions of intent as regards their status. There is an issue here of time and place. While I understand the expressions of concern that we have heard from across the House, this is not the time and this Bill is not the place for these amendments. In these circumstances, I invite noble Lords not to press them.

[Lord Patten of Barnes]

I wonder if I could put one point to the noble and learned Lord before he sits down. As ever, what he said was intellectually lucid and stimulating. I just want to jog back to what he said about consensus and agreement. It is a very important distinction and I am sure it will be interesting to all his ministerial colleagues in the Foreign and Commonwealth Office and to diplomats around the world. How does this distinction translate into other languages? Does he think that our interlocutors in Brussels regard what we appeared to accept in December as a consensus or as an agreement? Does he think that they will now be quite relaxed if we walk away from some of what was a consensus because it was not an agreement? I should like to be a little clearer on this. It is going to be very important as we go through this debate when we are told that things are part of a consensus and not part of an agreement. If, with his usual intellectual authority, he could explain that to naive, one-time make-believe diplomats like me, I should be grateful.

[Lord Keen of Elie]

I am most obliged to the noble Lord, if only for the compliment. As I sought to explain, we have the joint report and we have embraced it. We go on now to the next stage of negotiation. I used the term “consensus”, perhaps ill advisedly, to underline the point that we have not yet signed a binding agreement in international law—we have not yet achieved a treaty. We strive to achieve a treaty, and in striving to achieve that treaty we have in mind what we have already achieved in the joint report. But we acknowledge, as the EU itself has noted, that we have not yet placed that in the form of a treaty that is binding in international law. Until we do that, we do not draw it down into domestic law.

[Lord Adonis]

Does the noble and learned Lord envisage that Her Majesty’s Government might resile from any of the commitments they gave in the consensus they reached at the end of last year?

[Lord Keen of Elie]

I do not even imagine that Her Majesty’s Government would wish to do anything of the sort.

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[Lord Adonis]

Before my noble friend concludes, does he share my concern about what the Minister said about the difference between “consensus” and “agreement”? Does he agree that that is quite a significant statement on the part of the Government in the course of this debate? The only point in making the distinction, as I understand it, is that the Government do not regard themselves as fully committed to the terms of the “agreement” of last December.

[Lord Keen of Elie]

It is unusual for me to intervene, but I feel that if the noble Lord is going to make statements, he should make them accurately. If he is going to represent what a Minister has said, he should do so accurately. The distinction I drew was between an agreement that was now binding in international law and an agreement that was not now binding in international law. I hope the noble Lord’s recollection coincides with mine. If it does not, could he perhaps consult Hansard?

[Lord Foulkes of Cumnock]

It is a very interesting point, and the noble Lord, Lord Patten, highlighted it in his intervention. I wish that while he was speaking I had been able to translate “consensus” and “agreement” into Spanish, French, German, Italian, Portuguese, Welsh and so on to see whether there is a coincidence between one and the other. No doubt that is something that we can return to.

The Minister finished by saying that there is a time and a place, and that this is not the right time and not the right place for these amendments. There will be many more times and this will be the right place, and I look forward to speaking to the rights of European—

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[Lord Keen of Elie]

My Lords, I, too, am grateful to the noble Lord, Lord Beecham, for making that point. I would add only that I spoke as a Minister of this Government in expressing that view, because I spoke from the Dispatch Box when I made it clear. I can refer the noble and learned Lord, Lord Goldsmith, to Hansard in regard to that point. Of course, the origins of the remark may not have had quite the impact that it could otherwise have had if coming from another source—I do not seek to elaborate on that point.

Sometimes it comes ill to counsel to listen rather than to speak, but this is an occasion when it is entirely appropriate for me and for the Government to listen to what has been said. I am extremely grateful for the contributions of all noble Lords and noble and learned Lords with regard to the formulation of Clause 6(2). I refer to the formulation of the clause because I believe we have a common desire to ensure that we give appropriate, effective and clear guidance, in so far as it is required, to the judiciary regarding what is a relatively complex issue. Of course the noble and learned Lord, Lord Hope, pointed out that in the normal way one might delete Clause 6(2) and allow the courts to deal with this as they deal with other matters of comparative law, but he went on to point out—quite correctly, I submit—that here we are dealing with a very particular situation where guidance may be needed. I am conscious of the way in which the various amendments have evolved.

The noble and learned Lord, Lord Neuberger, also referred to Clause 6(4) and the issue of whether and when the Supreme Court might decide whether to adhere to precedents in this context. I bow to the far greater experience of the noble and learned Lords, Lord Neuberger and Lord Hope, who sat in the UK Supreme Court. My limited experience is that, where I attempted to persuade them to adhere or not to adhere to a particular precedent, they had no difficulty in making their own minds up.

Be that as it may, I recognise the force of the points that have been made. They have come from beyond this House as well because, as noble Lords will be aware, the Constitution Committee also made some recommendations about this. Indeed, its early recommendation in March 2017 was,

“the Government may wish to consider whether the Bill should provide that, as a general rule, UK courts ‘may have regard to’ the case law of the Court of Justice (and we stress that it should be optional)”.

Indeed, we were having regard to that as we looked at Clause 6(2).

A point was made about the distinction between “may” and “must” in the amendment of the noble Lord, Lord Pannick. It occurs to me that, where he uses “must”, he goes on in his amendment at (2C) to qualify the context in which that word is used, and there may not be a vast gulf between “may” and “must” in the context of the two amendments that have been tabled. Of course, that which was recommended by the Law Society of Scotland has the merit of some simplicity and embraces the same point.

At this stage I would add only that the Bingham Centre looked at the current recommendations of the Constitution Committee that lie behind the amendment in the name of the noble Lord, Lord Pannick, and raised concerns about a number of aspects of the formulation put forward by the committee. However, I make it clear that we greatly appreciate the contributions that have been made to this part of the Committee’s debate. We will go away and consider the various formulations, and I believe it would be sensible for the Government to engage with various interested parties once we have come to a view about how we can properly express what we all understand is necessary policy guidance in the context of this exceptional step. Against that background, I invite noble Lords to consider not pressing their amendments at this stage.

[Baroness Ludford]

I know I will not be popular by holding things up, but the Minister was specifically asked if he could explain the reference to,

“another EU entity or the EU”,

in Clause 6(2). I do not know whether he feels he could do that. Does it have any reference to the European Commission? The Prime Minister said we would have a binding commitment to follow EU state aid and competition law, and I wondered if it had any relevance in that context.

[Lord Keen of Elie]

I am not going to elaborate at this stage because, as I say, the Government are going to go away and consider the proposals for an amendment to Clause 6(2).

[Lord Pannick]

I am very grateful to the Minister for that encouraging response, and I am grateful to the noble Lords and noble and learned Lords who have spoken in this debate.

On a matter of detail, the noble Lord, Lord Adonis, asked about new subsection (2B) in Amendment 56, giving guidance to the judges to look to the relevance of an EU agreement. The noble Lord asked how that would work. I shall give him an example. If the judge is seeking to interpret a provision of retained EU law, relating to, say, medicinal products; if the Court of Justice after exit day pronounces on a regulation which has become part of retained EU law, and if the withdrawal agreement has said that there will be close regulatory alignment between the EU and the United Kingdom in that particular area, then the judge would be encouraged to pay close regard to what the Court of Justice had said about the meaning of the regulation. Our court would still be in control but it would pay particular regard—that is the whole point of new subsection (2B).

There is widespread agreement around the House that the wording of Clause 6(2) is unsatisfactory and that Parliament needs to give as much guidance as possible to judges in this context to protect them from being seen to be required to take policy decisions, which would undermine confidence in the rule of law. The Government and Parliament would be very unwise to reject, in particular, the concerns expressed by the noble and learned Lord, Lord Neuberger of Abbotsbury. It is much more difficult to identify precisely what should be put in place of Clause 6(2). I am encouraged by what the Minister said—that the Government are listening and considering this matter. I am sure that all noble Lords who have spoken would be happy to contribute to the discussions that will take place before Report. I hope that, on Report, the Government will bring forward amendments to Clause 6(2).