Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

2nd reading
Tuesday 11th October 2022 Lords Chamber

[Lord Kerr of Kinlochard (CB)]

My Lords, I find the Bill rather shocking, and I fear that we have to stand up and be counted and send it back to the other place. I find it shocking in four distinct ways. First, there is the point made by the noble Lord, Lord Howard. The protocol is an integral part of the withdrawal treaty. I share a lot of the distaste that the noble Lord, Lord Forsyth, expressed for the protocol. I think that the democratic deficit point is real. But it is an integral part of a treaty that the noble Lord’s Prime Minister negotiated and signed, which was commended to this House and the other House and which we voted for and ratified—and this country does not break treaties it signs: pacta sunt servanda. It has been demonstrated by the noble Lords, Lord Pannick and Lord Howard, that the doctrine of necessity simply does not apply in this case. Ours is an honourable country, which means that we cannot, in my view, approve the Bill.

Secondly, it is a power grab by the Executive. This point was made by the noble Baroness, Lady Meacher. It is astonishing to see our Delegated Powers Committee pointing out that the power grab is

“unprecedented in its cavalier treatment of Parliament”.

As the noble Baroness said, the Bill allows Ministers to do by regulation anything that normally could be done by an Act of Parliament, including amending provisions that have been enacted. That is autocracy. That is not a parliamentary system.

Thirdly, it is an act of self-harm. The withdrawal treaty is the foundation on which the trade and co-operation treaty is built. I do not see how the 27 could continue to allow us the TCA’s duty-free access to their market if we had broken our word and torn up the foundation treaty. I applaud the Prime Minister’s rapprochement with President Macron in Prague, but the Bill would destroy any chance of building grown-up relationships with our neighbours in continental Europe. The EU has held off so far, but it would have to say “See you in court” and it would have to take retaliatory measures—a point made by the noble Lord, Lord Ricketts.

Fourthly, the noble Lord, Lord Browne, argued that having the Bill’s provisions on the statute book would strengthen our hand in the current negotiations with the EU—and I am very glad that the negotiations have at last restarted. It is argued that having the gun on the table will concentrate EU minds. I am afraid there are two fatal flaws in that argument. First, the EU would resent and resist being blackmailed. It would have to, if only for reasons of precedent. Secondly, the gun is at our head. If it goes off, it is we who suffer.

What about Northern Ireland? This Bill would seriously damage Northern Ireland if our Government were to use the powers it confers on them. Northern Ireland would be out of the single market and all-Ireland links would be broken. As the noble Lord, Lord Jay, said, business in Northern Ireland really wants an end to the current uncertainty. That is the most important thing for business in Northern Ireland. Northern Ireland does not want the end of the protocol. Northern Ireland wants the end of uncertainty.

So each of these four facts seems to me to be sufficient to require us to ask the other place to think again. Cumulatively, the case is overwhelming. We have to stand up and be counted.

Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

Committee stage
Tuesday 25th October 2022 Lords Chamber

[Viscount Hailsham (Con)]

My Lords, I express my support for the observations of the noble Baroness, Lady Chapman, and the amendment advanced by my noble friend Lady Altmann. I would very happily have supported either, were this matter to be put to the vote.

I am against the Bill. I expressed my reasons at Second Reading and will not repeat them today because I appreciate that we are concerned here with a very narrow issue: whether this matter should go into Committee. In expressing my opposition to it going into Committee, I want to focus on one issue only, namely our relations with the European Union.

We have a new Prime Minister. I wish him well. Mr Sunak supported Brexit, a policy that I deeply regret. However, I am sure that he will be the first to recognise the need to improve our relations with the European Union. We must do so: they are our nearest, biggest and most important trading partner, very important allies and neighbours. We need to give this Government, led by Mr Sunak, the opportunity to reset their policy towards the European Union. I believe that the Bill, if enacted, will aggravate our relations with the European Union. It is possible that it will trigger a trade war. Both of these things would be highly undesirable. What this Government need is time: time to negotiate sensibly with the European Union. If we agree to defer the Bill and not let it go into Committee at this stage, we will be giving the Government and the European Union time to come to a sensible agreement. I commend that to this House.

[Lord Kerr of Kinlochard (CB)]

My Lords, I too will be brief. I have heard nothing in the preceding speeches with which I disagree, but I have one point that I would like to add.

I agree with the amendment put down by the noble Baroness, Lady Chapman, and with the amendment suggested by the noble Baroness, Lady Altmann. However, even in the unlikely event that the Government were to provide all six dossiers that have been requested, and in the even more unlikely event that these proved reassuring, I would still want to vote against this Bill. It is a matter of principle and honour.

You cannot make a silk purse out of a sow’s ear, and this is a pig of a Bill. The powers it confers on government using these powers is simply not compatible with how this country views its commitments. We do not tear up treaties. That is the point of principle; that is the matter of honour. A deal is a deal is a deal: pacta sunt servanda. The noble and learned Lord the Advocate-General told us at Second Reading, in a rather labyrinthine reply:

“The assertion that the Government’s position breaches international law is too bald and lacking in nuance.”


When questioned by the noble Lord, Lord Howard, he said that

“it would be wrong … to engage in a deeper debate.”—[Official Report, 11/10/22; cols. 765-66.]

He did not say why it would be wrong or when the moment would be, but I imagine he was waiting for the Constitution Committee’s report. Now that we have it, we see that the Constitution Committee is clear that even enacting this Bill would

“clearly breach the UK’s international obligations”.

There is not a lot of nuance there.

--- Later in debate ---

[Lord Purvis of Tweed (LD)]

I hear he has changed. The former Paymaster-General, who is now the former Attorney-General, was citing the former Attorney-General Suella Braverman, who is now the Home Secretary—even I am struggling to keep up with what is going on. Nevertheless, the principle is clear that, if the then Attorney-General was happy to provide advice to the Times in her abortive leadership campaign, we humbly seek that Parliament be equally enlightened with an update on exactly what the Government’s position is.

[Lord Kerr of Kinlochard (CB)]

Perhaps I might provide a lifeline to the Advocate-General for Scotland, because I am a Scotsman too and I hate to see him being so tortured. The noble Lord, Lord Pannick, asked to see the legal advice. I am sure, as he was sure, that in reply the Minister will remind us of the convention. The noble Lord’s alternative option was that the Minister should tell us now what he was unable to tell us, as it was an inappropriate time, at Second Reading.

I have a third option. I was struck that nowhere in the Minister’s quite long speech at Second Reading did he ever fall into the trap of making the applicability of the doctrine of necessity his view. It was never him explaining that he believed the doctrine of necessity applied. It seems to me that the concerns of the House might be satisfied by a memorandum. A memorandum was produced in June and July, which was a singularly unsatisfactory document in my view. It looks even less good now, having been subjected to critique at Second Reading and by the noble Lords, Lord Campbell, Lord Purvis and Lord Pannick, tonight. However, there could be a second edition setting out the Government’s response to the arguments that have been advanced, including by the Constitution Committee. So I suggest that a third option that would satisfy me and might satisfy the noble Lord, Lord Pannick, would be for the Minister to undertake tonight to produce for us a revised edition of the pre-summer memorandum.

[Lord Bew (CB)]

My Lords, very briefly, I have been trying to say that the legal advice is a little more complicated and nuanced. I am not claiming, for example, that any prominent international lawyers such as Professor Boyle support this Bill. In fact, I do not think he does; he is one of the many who believe in Article 16.

I am quite astounded. Only a few weeks ago, every civilised person knew that Article 16 was the most brutish thing they had ever heard of. All civilised Peers across all parties and all civilised people knew it was the most brutish thing they had ever heard of, just as they are sure of this tonight. However, at this point we have a serious negotiation with the EU. Why do they think that, to improve the atmosphere of these talks, it would be a smart idea for the British Government to come in on Monday morning and say, “Well, you know, civilised opinion has changed. A few months ago, we thought it was brutish; we now think this Bill is so brutish that we want you now to declare Article 16”. This is not serious. There is a serious negotiation going on. You cannot seriously ask the Government to do this. I sympathise and fully accept that the legal arguments are more complex than has been acknowledged in this Chamber this afternoon—they are difficult and I have no firm, final view—but it would be absurd for the Government to say at this point, “Oh, we were having this negotiation but, by the way, here is Article 16”. I am sorry, it just would not work.

Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

Committee stage
Tuesday 25th October 2022 Lords Chamber

[Lord Kerr of Kinlochard (CB)]

Before the noble Lord leaves the problem of the democratic deficit, I would like to say that I have considerable sympathy for his points. It was the principal reason why I was against the protocol when it was first produced. I would like to ask him: has he considered the mitigations that are possible—for example, the two suggested by the noble Lord, Lord Hain, earlier this afternoon? Would he also consider whether, unpleasant though it is to see this democratic deficit, it has an upside for Northern Ireland—what the then First Minister described as the “best of both worlds”? Finally, would he consider why the right solution to the democratic deficit could possibly be the destruction of the Northern Ireland protocol, given that it is an integral part of a treaty that we signed? We may like it or dislike it—the noble Lord dislikes it intensely and so do I—but we did sign up to it.

[Lord Morrow (DUP)]

I thank the noble Lord for his comments. I did listen very carefully to what the noble Lord, Lord Hain, said and I want to read Hansard tomorrow to get better into my head exactly what he was saying, but I was struck by some of the things he said. Like the noble Lord, Lord Kerr, I voted against the protocol, as did every unionist in Northern Ireland—so it has no support among one section of the community.

We have long moved away from majoritism. As a matter of fact, I do not remember majoritism in Northern Ireland. That age has long gone and we were told that it would never return. Politics in Northern Ireland would be by consensus; that is what we were told. We were not only told it—they put it down in law. But I have yet to hear from many who berate this Bill that they are concerned about how the Belfast agreement has been kicked right, left and centre. I ask the noble Lord, Lord Kerr, to suppose for a second that this border was where it should be and not in the Irish Sea. Does anybody—but anybody—feel for a moment that that would not have caused the complete collapse of the Northern Ireland Assembly?

We have not collapsed the Northern Ireland Assembly as such. The Ministers are still in place, doing their tasks and getting on with it, because we did it in such a way. When Sinn Féin did it, they wrapped everything up. I have never heard one Member from either the Lib Dems or Labour—which surprises me—say that Sinn Féin has done wrong here. I did not hear it. Maybe it was said when I was not here, but I have never heard that said. I find that there is pick and choose. If unionists do something, they are a nasty lot, they are nasty people, but with Sinn Féin it is, “Oh no, they have a reason; they have a cause.” Well, we have a cause and we want to defend that cause.

In 1960 the UN went further and passed its decolonisation declaration, basically shifting its position to one of actively encouraging imperial powers to decolonise. Today, the UN still has a committee dedicated to the decolonisation of the small remaining colonies. If you examine its work, the UN is very clear that an NSGT is not a jurisdiction that is governed entirely by another country. Most NSGTs are largely self-governing. They remain classified as NSGTs because they are not entirely self-governing. Now, of course, I recognise that, in order to be formally classified as an NSGT by the UN, you not only have to meet the definition of an NSGT; you also have to persuade the Assembly to vote an agreement that a jurisdiction should be so defined.

I am not about to start a campaign for the UN to vote to classify Northern Ireland as an EU NSGT. However, it is clear, on the basis of the UN definition of an NSGT and the level of self-government enjoyed by existing NSGTs, that Northern Ireland not only meets the UN definition of an NSGT, but one in relation to which the colonial power—in our case the EU—controls more of the governance of Northern Ireland than do many officially recognised colonial powers in relation to their NSGTs.

The story of colonisation since 1960 has been the story of decolonisation. The actions of the EU arguably amount to the first example of new colonisation, as opposed to annexation by military force, since 1960. I find it quite extraordinary that the EU should have even dreamt of seeking this agreement. It does not reflect well on the EU at all that it should have requested this, and the fact that the UK Government had to fight it for even the most ridiculous four years, after the fact, is quite extraordinary. Of course, its justification was allegedly defending the Good Friday agreement—or Belfast agreement, whichever you choose—but this is utterly absurd.

The citizens of Northern Ireland deserve the full rigour of protection under international law in respect of their democratic right to political participation as our counterparts have in each of the other constituent parts of the United Kingdom or indeed any other country. However, that protection has been patently undermined by the protocol.

Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

Committee stage
Monday 31st October 2022 Lords Chamber

[Lord Bew (CB)]

My Lords, I rise to put a technical point. I am not sure of the answer—it is a genuine question—but it bears on the amendment. Trade is a reserved matter in Northern Ireland. When there was first sight of Theresa May’s protocol, there was great rage in Northern Ireland. People in Northern Ireland were told, “Sorry, this is a reserved matter.” Subsequently—it was the second iteration—it was very much the view of the noble Lord, Lord Frost, that that was not itself a satisfactory answer, and there is provision in the protocol negotiated by the Johnson Government. The one significant change is to make, in very specific circumstances, a role for the consent of the Northern Ireland Assembly. That is probably the major difference between the two protocols. However, if it is a reserved matter—if that was the answer that I remember being given throughout 2017 and 2018 in this House—I cannot quite see the purchase of these amendments.

If it is a reserved matter, it is a reserved matter. It is for this Parliament to deal with these trade matters. The burden of the Bill is in dealing with Articles 5 and 10 of the protocol—not those on human rights and so on—in a way which, I accept, many Members of this House do not like. None the less, it does not seem appropriate to be raising these issues now about that role for the Northern Ireland Assembly, because trade is a reserved matter held by this House.

The history of this is perfectly clear: the Government of Ireland Act 1920 has language on trade, as do the prior Acts of Union 1800. Then there were modifications to the Government of Ireland Act—benign modernisations, I would say—under the Good Friday agreement and the legislation that went through this House, which left us with trade as a reserved matter. It seems to me that this should be taken into account. There may be some possible answer to it, and the noble Lord, Lord Frost, has negotiated a possible way that one might work around it, but trade is a reserved matter at this point. We are not concerned with the human rights provisions of the protocol and so on; they are not the issue in the Bill. It is directed mainly against Articles 5 and 10, rightly or wrongly—wrongly, I am sure many colleagues on my own Benches think—but trade being a reserved matter is a problem for amendments of this sort.

[Lord Kerr of Kinlochard (CB)]

I agree that external trade is a reserved matter, but here we are talking about trade inside the United Kingdom—as well as trade inside the single market of the European Union, of course. I do not think it follows at all that one can say there is no role for the Assembly because external trade is a reserved matter.

I would love to support the amendment in the names of the two noble Baronesses. I agree with the spirit of it. It is extraordinary how, throughout this saga, things have been done to Northern Ireland without Northern Ireland being fully consulted or even informed. It is extraordinary, when you think about it, that the protocol was concluded without the involvement—I want to embarrass him now—of the noble Lord, Lord Caine, who knows far more about these issues than most of us do and has a judgment that we would all respect. That should have been brought to bear.

I hesitate to criticise the noble Lord, Lord Frost, who is busy with his emails, but, if he would like to listen, I will criticise him. It would have been good if he had found the ability to spend more time in Northern Ireland while he was negotiating. It would have been great if his master, the then Prime Minister, had been able to spend some time trying to understand the issues and seeing people on the ground, but it is an astonishing fact that Michel Barnier had more direct personal experience of Northern Ireland than the noble Lord, Lord Frost, had. That was because Barnier had spent time there doing jobs for previous presidents of the Commission.

I feel that the syndrome of imposing things on Northern Ireland, perhaps under cover of talk about reserved matters, which I disagree with, has been damaging to the United Kingdom and, of course, to Northern Ireland. I would love to support these amendments, and of course I would do so. But it would not make an illegal act less illegal if the Northern Ireland Assembly voted for it, so what are we talking about here?

I caused the Minister to look askance when I said that we are talking about a pig of a Bill. The Minister thought that was an indelicate reference. However, what we are doing here is trying to put lipstick on the pig. It will still be a pig even if this amendment is approved. If it were put to a vote, of course I would vote for it, but my general feeling is that we know what we have to do with this Bill. The noble Lord, Lord Cormack, has correctly pointed out that what we are engaged in now is a waste of time because I am confident that at the end of the day, we will do what we have to do to this Bill. I hope the end of the day comes soon.

[Lord Davies of Stamford (Lab)]

My Lords, for a number of years I was shadow Secretary of State for Northern Ireland. I have not been involved in recent political discussions in the Province. In a sense, I have come back to the subject afresh today. It certainly keeps all its fascination. We have just heard two immensely important contributions to the debate by the noble Lords, Lord Kerr and Lord Bew. The noble Lord, Lord Bew, dealt clearly, decisively and definitively with whether or not trade is a reserved matter. We must be grateful for that analysis, which I hope will guide us in dealing with this Bill.

The Bill is an extraordinarily unpopular document, is it not? It is quite difficult to find anybody really prepared to defend it. The DUP is obviously very much opposed to it. We have heard this afternoon from people who are close to the DUP’s leadership. The European Commission has launched infringement procedures in relation to the British Government’s activity over this Bill. The British Government do not seem to be very convinced of the virtues of the Bill. Certainly no one this afternoon has made a strong defence of the Bill.

Against that background, I rather agree with the noble Lord, Lord Cormack. It is quite unlikely that the DUP will do a U-turn; it would be a humiliating thing to do. Therefore, one must assume that the Bill in its present form does not have very far to go. That is not surprising because—and the reason I really oppose this Bill—it seems contrary to the essence of parliamentary democracy. The principle which underlines our whole system in this country is that the law must be made by the legislature—the legally elected representatives of the public. It is their responsibility to make laws; it is not the responsibility of the Government to make laws, nor is it desirable that they should try to do so.

Many of the provisions in this controversial protocol Bill reveal that there is an ambition for the Government to rewrite the law themselves. I look at the overview of the Bill in the very helpful summary produced by the Library. It says that one of the purposes is

“giving ministers delegated powers to make new provision in domestic law ‘in connection with’ ‘excluded provision’”;

in other words, the Bill declares itself as being in the business of making law and imposing it on the public, which is quite contrary to all democratic principles, and we should be quite upset about it.

This is something which has disfigured European history in the last 100 years. A number of people, from Mussolini to Hitler to Marshal Pétain, have adopted this course of deciding to get through an assembly, which would be reasonably compliant, a Bill entitling the Government to write the law themselves in the future. That is what happens to democracies if they are under that kind of attack. We should not in any way be party to that.

The House of Lords Library’s summary of the situation makes it clear that, in this case, the executive branch is deciding to write law and change international treaties more or less at the drop of a hat. That is obviously not something that anyone in this House could tolerate, and we should therefore think about this extremely carefully before it proceeds. We should make it absolutely clear that the Government cannot get away with asking for power in an enabling Act to simply write the future statute—not making this clear would be contrary to what we should do in this place.

--- Later in debate ---

[Lord Bew (CB)]

My Lords, I am well aware of the sensitivity in this House regarding Henry VIII powers, and I respect that; it is a serious argument. However, Northern Ireland looks at these things from an angle that is not entirely the way the House of Lords looks at them. For one thing, there are what you might call Louis XIV powers all over the place in terms of European law and regulations, but there is silence about that.

The second issue, which has already been alluded to by the noble Lord, Lord Dodds, is that again and again, we have had the most dramatic demonstrations of Henry VIII powers in areas where I and other Members, a majority in your Lordships’ House, are in agreement—abortion laws and so on. We do it all the time. When we as a local assembly like it, when it is our kind of opinion, we have no problems. When we do not like what is proposed, we discover that this application of Henry VIII powers is intrinsically terrible. To be blunt, the House needs to avoid looking totally hypocritical on this point.

I feel that I have been living for a very long time with Article 16 and the potential illegality or otherwise of the Government’s legislation. When I first encountered it, in fact, it was Article 15 in Theresa May’s Bill; it was that long ago. I read and reread it until I was blue in the face. Let me say what the problem is in attempting to challenge the Government’s position. The best argument against the current position in the legislation is that Article 16 could be and should have been applied. At the moment, it is ridiculous. We are in the middle of a serious negotiation with the EU and it would break that up, so it is fatuous and politically absurd. Apart from the principle of reality, I can see why people want to argue that, but it is not going to happen now because the Government want this legislation with the EU to succeed. In the Financial Times as recently as September, the EU was defining the application of Article 16 as an outrage and so on. The situation would simply be aggravated.

The other weak point of this argument is that saying, “We want Article 16 but nothing else” is the sound of one hand clapping. None of those who have argued for it in this House since Second Reading has shown any grasp of the central difficulty of the relationship between the two treaties and their interaction. If you are going to argue, as distinguished international lawyers have done before both our Select Committees, that the Government have a case of sorts but Article 16 should be applied first, that is based on the idea that there is an interaction between the two treaties and this is the best way of acting to defend the Good Friday agreement. That is a perfectly respectable intellectual legal argument, but it just does not fit with the political moment we find ourselves in, with ongoing negotiations.

The sensitivity that people in this Chamber have about the attitudes and feelings of the EU is quite remarkable when they do not seem to feel it themselves; they feel that they are quite adult enough to get on with this negotiation anyway, regardless of the Bill. As I pointed out, the Irish Foreign Secretary said openly that they do not like the Bill but that is not a reason for not having the negotiations. Still, it is wonderful to see people stick up for other people’s rights and interests when they themselves do not seem quite so keen or worked up about the subject.

The main point is that just saying “Article 16” is simply one hand clapping. The only possible viable argument is to say—as indeed both the House of Commons and our own Select Committee have been told—that that is indeed the way you could use it to get a result. The best criticism of the Government is that you cannot really prove necessity unless you have gone down this route. It so happens that the Government are stuck in a moment of real politics, the real negotiation that is going on, so they cannot do it, but the majority of speakers in this House say, “I would like Article 16”. That is an amazing recent conversion to Article 16. A few months ago, most of us hated it and regarded even talking about it as a piece of British brutishness. Now we really love it because we prefer it to the Bill. Unless you add to that that you accept that there is a real problem with the interaction between this agreement and the Good Friday agreement, as the former Lord Chancellor said in the House of Commons, then, in the Chinese phrase, it is just one hand clapping.

[Lord Kerr of Kinlochard (CB)]

My Lords, the noble Lord, Lord Bew, raises a fascinating conundrum, but what he said about Article 16 was based on a misunderstanding of what the noble Lord, Lord Campbell, said earlier. I do not think I have met anybody in this House who believes that the right course of action, in abstract, is to use Article 16. The right course of action is to apply the treaty that we signed: that is what a lot of us believe. Clearly, there are others who take a different view. The point that the noble Lord, Lord Campbell, was making—which is clearly correct, and has been made several times by the noble Lord, Lord Pannick—was that there is Article 16. It exists. It is the designated route—the agreed route, the treaty route—to deal with a dispute about the implementation of the protocol. I am not saying that we should be using Article 16. I am saying that we should not be using another means and pretending that it is legal so to do while Article 16 exists. That seems to be the rub of it.

I will try to deal in an amateur way with the interesting questions from the noble Lord, Lord Lilley. I do not know the answer either, but one answer would be the Irish answer: “I wouldn’t be starting from here.” I am sure that the noble Lord agrees with me that if you read Clause 18(1) or Clause 22(1) and (2) of the Bill, the only question in your mind is: is this Lewis Carroll or is it Stalin? These are astonishing powers taken for the Minister, by regulation, to do whatever he likes, providing it is broadly to do with Northern Ireland. As the noble Lord, Lord Pannick, said, the reports that we have seen from three committees—but particularly the Delegated Powers Committee—are devastating. I cannot remember seeing in this House such strong language used in a unanimously agreed cross-party report.

The noble Lord, Lord Lilley, would agree with me that we do not want to be in this situation. There must be another solution. As a former negotiator, I would say that it is crucial to avoid putting the ball in your own net. Frankly, attempting this legislation while also attempting—or claiming to be attempting—to conduct negotiations, is absurd. Here I part company with my friend the noble Lord, Lord Frost, whose third argument today was exploded by the noble Lord, Lord Purvis. He said that it is necessary for negotiating reasons to advance this protocol; this is what will make the other side sit up and pay attention. You cannot argue both necessity and that. In my view, you would be mad to argue that, because on the other side of the table it is not a playground spat. On the other side of the table is a grown-up group of 27 countries that believe in the rule of law and are concerned that bad precedents should not be set. They cannot possibly concede that, because there is a blunderbuss on the table, they must give you what you are asking for in negotiations. They are not going to do that. Therefore, my answer to the conundrum of the noble Lord, Lord Lilley, is that it is a great mistake to legislate in these terms while you are negotiating. If Ministers are telling the truth about their wish to negotiate a solution to this, the last thing they should be doing is putting forward this Bill.

--- Later in debate ---

[Lord Kerr of Kinlochard (CB)]

I yield to none in my respect for the noble Lord, Lord McCrea, and the way he pursues this argument. It was an argument that we had earlier in our debate, and I share his distaste for the protocol, as he knows. I do not agree with the noble Lord, Lord Hannan, that there is no democratic deficit. I think there is a real democratic deficit and it could be put right. It would be good if the noble Lord would think about the suggestions made by the noble Lord, Lord Hain, earlier in our debate. The argument that the protocol is inconsistent with the Good Friday agreement comes across rather badly from those who opposed the Good Friday agreement. I myself was strongly in favour of the Good Friday agreement and I was sorry to see the DUP against it at the time. It is hard to sustain the argument now, in any case, given that all the parties to the withdrawal agreement—in which the protocol rests—do not agree with it. The United Kingdom Government do not buy the argument that the DUP are making—or they have always, up to now, not bought that argument. Although I understand the concerns the noble Lord puts forward, I do not think it works as a matter of law or that the Gibraltar precedent—although he is quite right about it—is relevant.

[Lord Hain (Lab)]

Will the noble Lord accept a small intervention to follow up on the point he made about the democratic deficit? I agree with him and he agrees with me on it. Would he confirm that Norway, for example, does not have Ministers in the Council of Ministers or direct representation in the European Parliament because it is not in the European Union, but does have consultative rights? It is consulted on all EU single market matters. Northern Ireland could be consulted in a similar way.

[Lord Kerr of Kinlochard (CB)]

I so confirm.

[The Earl of Kinnoull (CB)]

My Lords, I ask the Minister a more technical question about the interrelationship between the trade and co-operation agreement and the withdrawal agreement. The European Affairs Committee spent a very long time writing a report, which came out last December, about trading goods. We were very careful to make sure that we did not talk about the Northern Irish situation for two reasons. First, we have our own sub-committee for dealing with that. Secondly, it was horribly complicated.

I should like some comfort on a problem that would arise should some kind of good head from Great Britain to Northern Ireland. For the purposes of the Minister’s powers, it is a Northern Ireland good. However, it is, at the same time, latently a TCA good for the purposes of moving across an EU border. An immediate set of complications arises from this. I would, therefore, be grateful for the Minister’s thoughts on what the interrelationship is between the TCA and the withdrawal agreement on goods in general. I would also be grateful for some comfort that when Ministers are thinking about exercising all the powers that this selection of clauses would give them, they will have do so in regard to all the relevant various international agreements we have. The TCA is not our only agreement with the EU.

Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

Committee stage
Wednesday 2nd November 2022 Lords Chamber

[Lord Dodds of Duncairn (DUP)]

My Lords—

[Lord Kerr of Kinlochard (CB)]

The big point about this clause is the one made by the noble and learned Lord, Lord Judge, supported by the noble Lord, Lord Campbell. We should not be writing into our statute book such extraordinary sweeping powers, to be exercised at the stroke of a pen, with no real supervision or scrutiny by the Executive.

I would like to speak briefly to the second important point, which is, in my view, the one made by the noble Lord, Lord Purvis of Tweed, when he spoke of the “chill effect”. I also found things I agreed with in the speech of the noble Lord, Lord Leigh of Hurley, rather to my surprise. The chill effect is real and will continue. Investors will be deterred from coming to Northern Ireland, and Northern Irish businesses will be deterred from investing, by the uncertainty which will not be resolved by the passage of this Bill but created by its passage. The effect of Clause 12, taken with Clause 22, is to enable the Minister to establish a different regime in Northern Ireland from the regime in Great Britain. The assumption might be that if the protocol falls, what results is the status quo ante: the UK rules. That is not the case. The Minister would be entirely free to produce whatever rules for Northern Ireland he thought fit. It is obvious what that uncertainty does to investment.

I am surprised at the silence of the DUP.

[Lord Dodds of Duncairn (DUP)]

We cannot get in.

[Lord Kerr of Kinlochard (CB)]

I am delighted that the silence may be about to be broken. It seems to me it would be odd to be insouciant about this uncertainty. The DUP may have been given assurances that only UK rules will be applied and nothing will be different, in which case I suppose it might believe such assurances. That would be a triumph of hope over experience, because we would not be where we are today—we would not have this Bill to discuss—if the DUP had not been betrayed and misled by the last Prime Minister but one.

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[Lord Ahmad of Wimbledon (Con)]

No, I think we are. That is exactly what we are seeking to do. It is clear that the noble Baroness remains unconvinced.

Turning back to the amendments themselves—

[Lord Kerr of Kinlochard (CB)]

I do not think it is clear; I do not understand. If the wish of the Government is to apply UK state aid laws in Northern Ireland—and that would be the wish of the noble Lord, Lord Dodds —why does the Bill not say that? Why, instead, does it import this uncertainty, which would be continuing far into the future, because the regulations applying in Northern Ireland would depend on the whim of the Minister, as the noble and learned Lord, Lord Judge, pointed out?

[Lord Ahmad of Wimbledon (Con)]

I have listened again to the noble Lord and, if I may, just for clarity, I will ensure that I get a full response to this. I will check with my officials again and provide the added clarity that the noble Baroness and the noble Lord are seeking. If that needs to be followed up in writing, I will, of course, do so as well. Ultimately, I stand by what I said earlier, that what we are seeking to do here is to address the specific issues that there are in practical terms.

My noble friend’s concerns about the scope of the Bill’s delegated powers were raised by other noble Lords. I hope that I can reassure my noble friend that the power may already be exercised only to make appropriate provision in connection with the exclusion of Article 10 of the protocol and the domestic provision that Clause 12 places on it. This provides a clear and limited framework for what the power can do; providing further constraints would provide additional uncertainty to businesses and consumers. In this case, it would put off, and potentially circumscribe, the ability to facilitate an effective domestic subsidy control regime that applies to the whole of the UK, leaving Northern Ireland being treated unfairly compared with the rest of the UK.

The Government are aware that regulations with retrospective effect are exceptional. However, it is clear that the continuing application of the state aid acquis in Northern Ireland has led to a sense of disconnection for many people, particularly the unionist parties, and puts the re-establishment of power-sharing arrangements at risk. As the EU state aid acquis is removed, it may be necessary to ensure that actions granted under the regime are appropriately reconciled with the UK regime. Removing Ministers’ ability to make retrospective provision, which was mentioned by several noble Lords, could undermine the Government’s ability to ensure a single, coherent, domestic subsidy control programme throughout the UK. It would also, in the Government’s view, create further uncertainty for businesses in Northern Ireland and across the UK. Any such regulations would already be subject to the higher level of scrutiny in the House. I know that my noble friend is concerned about creating uncertainty for investors, to which he alluded in his contribution. I hope he is reassured by what I have said: that the Government’s intention in this case is only to provide certainty. There will be time to examine any subsequent regulations.

The amendment also seeks to ensure that the power can make incidental and transitory provision. I am happy to be able to inform my noble friend that this is already the case by virtue of the operation of Clause 22(2)(e). The amendment also seeks to make necessary regulations subject to annulment by Parliament. We will, of course, debate this further when we reach Clause 22, but the Government’s proposition is that this is appropriate when regulations are making retrospective provision or amending an Act of Parliament, but that it would not be the appropriate level of scrutiny for other instruments making what are likely to be smaller or more technical free-standing provisions. I hope, for these reasons, that my noble friend will be minded to not move his amendment.

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[Lord Kerr of Kinlochard (CB)]

I keep hoping that the noble Lord, Lord Cormack, will say something with which I can disagree—but he keeps on letting me down. I strongly support Amendment 20, of course, for the obvious reasons that I need not repeat. I also support Amendment 21B, put forward by the noble Lord, Lord Hain, and strongly supported by the noble Lord, Lord Deben.

I ought to declare an ex-interest. I used to be a director of a power company and, if I remember right, Northern Ireland is a net importer of electricity but a large net exporter to the Republic. The trade with the Republic is less than the trade that comes in from Scotland on the interconnector. It follows that, if the Bill goes through in the form it is in now, unamended by the noble Lord, Lord Hain, the collapse of the common electricity market will do very grave damage to the Republic as well as to Northern Ireland. For Northern Ireland, it is important for security of supply and to keep costs down; in the Republic, it is much more important because the Republic is a net importer; it is very short of generating capacity.

So I say to the Minister that I really hope he will buy Amendment 21B from the noble Lord, Lord Hain —I cannot see any reason why he should not. If he does not buy it, would the Government please produce before Report a clear statement of the discussions they will by then have had, if they have not already had them, with the Government in Dublin about how the crisis that this would create for the Government in Dublin is to be avoided or mitigated.

I will also add a word on the very important point made by the noble Earl, Lord Kinnoull. He made it very gently. There is no doubt that the European Union means what it says when it says that, if we put this Bill in its present form on our statute book, the TCA bets are off. We are heading for a trade war if we do this. I hope the DUP will bear that point in mind because, although the trade war would be acutely damaging to the whole United Kingdom, it would do particular damage to the economy of Northern Ireland.

[Baroness Hoey (Non-Afl)]

I understand what the noble Lord is saying—that the European Union would likely invoke some kind of trade war—but does he understand that, for many people in Northern Ireland, this Bill is the only thing that is giving them some hope that there will be real change? A trade war is very worrying, but there are also very worrying signs in Northern Ireland of deep unrest, concern and instability. That is why the suggestion from the noble Lord, Lord Cormack, that we should get rid of this Bill would be deeply damaging to relations in Northern Ireland.

[Lord Kerr of Kinlochard (CB)]

With great respect to the noble Baroness, that is not what the public opinion polls are telling us. At present, they seem to be telling us that what a majority of people in Northern Ireland, and a great majority of younger people in Northern Ireland, are looking for is certainty, and they are reasonably content with the protocol.

[Baroness Hoey (Non-Afl)]

The opinion polls told us that remain was going to win the referendum—they were very wrong.

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[Lord Kerr of Kinlochard (CB)]

I have no expertise to match that of the noble Baroness. But I do think we need to remember that, in the last Northern Ireland election, the voting for the DUP was about one in five of those who voted—and, since the turnout was about 60%, it was a pretty low proportion of the electorate. It is worrying, or at least curious, that the DUP, which constitutes, on its voting last time around, 0.4% of the UK electorate, should be able, it seems, to wag the dog. It is a very small tail that is wagging the dog—and, if we all end up in a trade war with the European Union, it will be the tail that gets the most pain.

[Lord Deben (Con)]

Will my noble friend accept this, just to get the two noble Lords together—if I may put it like that? The fact is that nobody in Northern Ireland is going to accept measures that turn the lights off. Most people in Northern Ireland actually want to do something about climate change; the polls are absolutely clear about that. This Bill will mean that we will not be able to fight climate change properly, and the lights are certainly in danger—and, if the lights went off, I do not think that people would thank the DUP for that.

Northern Ireland Protocol Bill

Lord Kerr of Kinlochard Excerpts

Committee stage
Monday 7th November 2022 Lords Chamber

[Lord Kerr of Kinlochard (CB)]

I have reached the same conclusion as the noble Lord, Lord Cormack, but via a slightly different route. I heard the noble Baroness and the noble Lord refer to talks proceeding amicably and constructively. The noble Lord, Lord Ahmad of Wimbledon, has regularly assured us from his own involvement in the talks that they are proceeding satisfactorily and are in no way being derailed by this Bill.

I am miles away from the action, of course—like the noble Lord, Lord Dodds of Duncairn, I would be very grateful if the Government could find the time to give us some reports on the talks from time to time—but I get a rather different impression of the view in Brussels. My impression is that there is not a great deal going on in these talks, and that the officials involved do not have the kind of instructions which give them discretion to do any negotiating. My impression is that British Ministers are not particularly hands-on, that they are not very closely involved in the talks and that, in fact, no real political input and impetus has been given as yet.

On the EU side, I think there is a natural tendency to wait and see whether the arrival of a new Government and a new Prime Minister in Britain will bring about any changes in the British position. The Commission has succeeded in persuading the member states that the CJEU cases against us can be left in limbo for the moment; a number of member states would have preferred to proceed to having these cases heard, but they stay in limbo and there seems to be a sort of consensus on that. But there is absolutely no pressure that I can detect among member states for any softening of Šefčovič’s mandate or any change in the instructions he is getting, perhaps partly because they are waiting to see whether there is some change in the instructions our people have. I detect no sign of anybody believing that Šefčovič’s instructions will change while the threat of this Bill hangs over the negotiations.

In my view—I repeat that I am miles away from the action, so I may be quite wrong—the only real debate among member states is whether contingency planning should be started on their side and whether it is this Bill reaching the statute book or actual use of the powers it contains that should trigger resort to action. The action would of course be the end of the talks and the necessary review of the terms of the trade and co-operation agreement. I think everybody believes that in Brussels. As the noble Earl, Lord Kinnoull, reminded us on our last day of Committee, we committed ourselves in the TCA to carrying out our obligations as in the withdrawal agreement, which include the protocol. So if we were to use the powers in this Bill or, as some say—I am among them—put this Bill on the statute book, we would be in breach of not just the withdrawal agreement but the TCA.

So I think the debate is about contingency planning for that eventuality, rather than for any change or softening of the EU position in the talks. Therefore, it seems to me, we should recognise that what we are doing here, if we were to pass this Bill, is setting ourselves up for a rather serious trade war with the EU and for the return of all the problems in Northern Ireland that will result from Northern Ireland no longer being a member of the single market. We will go back to a different form of frontier problem, from which the protocol was designed to have us escape.

So I reach exactly the same conclusion as did the noble Lord, Lord Cormack, but by a slightly different route. I do not think that the talks are going particularly well, and I hope that the noble Lord, Lord Ahmad, will act on the promise that he made on our last day in Committee to see if he could ensure that we receive progress reports on the talks. Though I am miles away from the action, it seems to me that, if we proceed with this Bill, we are heading straight into a thunderstorm that will sink the ship.

[Baroness McIntosh of Pickering (Con)]

Before the noble Lord sits down, could he go one step further and ask my noble friend the Minister, in responding to this debate, to say whether he agrees with the analysis of the noble Lord, Lord Kerr, which I do, that we would be in breach not only of the withdrawal agreement but of the trade and co-operation agreement? It would be very good to get that on the record at this stage. Will he just go so far as to press the Minister, in summing up, to say whether he agrees with his analysis?

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[Lord Dodds of Duncairn (DUP)]

My Lords, we have ranged once again, in a debate on one of the amendments, far and wide across the whole gamut of the protocol Bill and the protocol itself. In that context, I want to follow up on the speech of the noble Lord, Lord Kerr, who talked about the state of the negotiations, the technical talks, the discussions, the conversations or whatever they may be. As he rightly said, we are not au fait with the detail, and those of us whom the noble Lord, Lord Empey, referenced who deal with politics in Northern Ireland and represent people in Northern Ireland are not privy to the details either.

I think that it is correct, as the noble Lord, Lord Kerr said, that there appears to be no difference in the negotiating mandate of Commissioner Vice-President Šefčovič so far as the EU side of the negotiations is concerned. Indeed, that has been confirmed to me and, I am sure, to other noble Lords informally by people who are closer to the talks than many of us are. Of course, the Government’s position has been set out in the Command Paper, published in July 2021, and in the Bill, but so long as the negotiating mandate of the European Union negotiator is not changed, there can be little prospect for any positive outcome from the discussions, certainly not in the short term.

We can all agree that we need to solve this problem, and there are only two ways that it can be solved. It is either by negotiation or by action on the part of His Majesty’s Government. The danger of saying, “We’re not going to get anywhere in the discussions and we should pull or pause the Bill” is in what happens in Northern Ireland. What happens to the Belfast agreement as amended by the St Andrews agreement? What happens to the institutions? I have heard very little reference thus far from noble Lords who do not have a direct connection with Northern Ireland about the implications on the political and peace process in Northern Ireland.

The longer we do not have any outcome from negotiations, and if nothing is happening on the Government’s side on legislation, then the institutions will not be reformed, because there is not the basis for power sharing, when you have trashed one of the main strands of the agreement—strand 3, the east-west dimension—and when you have undermined the Northern Ireland Assembly through the removal of the cross-community consent principle. We have to address these matters.

While people may focus on what the outcome may be in terms of the withdrawal agreement and the trade and co-operation agreement—I entirely understand that—we also have to examine the implications on the Belfast agreement, on the St Andrews agreement, and on the peace and political process in Northern Ireland, which is in a very fragile state. The noble Lord, Lord Kilclooney, highlighted a recent example of where these things can go.

I urge your Lordships to examine and bear in mind the implications, if we do not get a negotiated outcome which is satisfactory. I share the analysis of noble Lord, Lord Kerr, that it does not look as if that is going to happen—certainly any time soon—and if we at the same time do not proceed with the Bill, where on earth does that leave the political process in Northern Ireland? It leaves it in a continuing state of limbo, which we have all agreed can be filled only by dangerous people—men of violence. We need to address these matters urgently.

[Lord Kerr of Kinlochard (CB)]

May I clarify something? My position is that there will be no progress with these talks until there is the involvement of high-level politicians from this country. I remember in the 1990s the attempt to move Congress from its support of the wrong side—in the British Government’s view—in Northern Ireland. I was ambassador and made a certain amount of progress, but the real progress was made only when Prime Minister Major and the then Minister of State, now the noble Marquess, Lord Lothian, took an active involvement in helping me to see the people one had to convince on the Hill. We need the involvement of senior British Ministers. I strongly agree with the noble Lord, Lord Empey, that we need the involvement of people from Northern Ireland. This must not be an agreement, if one is achieved, that is imposed on Northern Ireland. It has to be one that is owned by Northern Ireland.

However, my view is that there is no chance of persuading the Council of the European Union that it should modify Mr Šefčovič’s mandate while technical talks are going nowhere and there are no signs of any movement, or even active involvement, by the highest levels of the British political establishment. I do not mean that I think the talks are bound to fail; I mean that, at present, they are not succeeding.

[Lord Brown of Eaton-under-Heywood (CB)]

My Lords, I maintained a Trappist silence throughout all the earlier debates on this Bill. I may be prominent among those wishing I had maintained it when I sit down in a moment or two because I recognise that I speak from a position of having less knowledge of the political and economic background to this debate than perhaps anybody else here—certainly less than anyone who has spoken.

What has driven me to my feet is what seems a striking absence of any reference to Article 16; again, we heard it in earlier debates but not today. To my mind—I speak in this respect simply as a lawyer—it is custom-built to meet any legitimate needs, which there are, to adapt processes in the Province today. What is required of the protocol by way of rewriting treaties is in doubt, but the protocol does not pre-empt the Belfast agreement obligations and commitments on all sides. On the contrary, Belfast is the primary one of these two treaties, which are enforceable under international law.

Those who know much more about this than I do emphasise—rightly, to my mind—the third strand of Belfast, which concerns east-west trade within the UK internal market. Far from the protocol pre-empting what we as the UK are entitled to insist on under the Belfast agreement, surely it accommodates the crucial argument—let the politicians in Northern Ireland make, refine, emphasise and urge this—that the regulatory controls that the EU currently exercises under the protocol, as well as the intensity of their policing, are in fact quite incompatible with its obligation to observe the Belfast agreement. You have only to look at the Belfast agreement to see that we, the UK, are duty bound to fight against the long-term alienation—I forget the precise language—of any community. We did it for the nationalists in respect of language in Northern Ireland. Now we owe the unionists some obligation to try to reinforce the critical importance of the east-west trade link here.

I therefore have no brief for this Bill. The unionists say, “You need this to get back into the Assembly”. That is nonsense. They open their mouths far too wide but their legitimate interests should be—indeed, must be—protected. Do it under Article 16, which meets any imperative need of the day, and let the people of Northern Ireland specify precisely what is required by way of adapting the processes under the protocol. If there needs to be any adaptation of the language, let them deal with that too. As the noble Lord, Lord Howard, said in an earlier debate, do not be too theological about the language—just get the agreement to do what is necessary.

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This clause also allows a Minister to make legislative changes that they consider appropriate for the purposes of implementing a relevant agreement with the EU. It is also vital in ensuring that we have the ability to promptly implement—

[Lord Kerr of Kinlochard (CB)]

Does Clause 19 not replace CRaG in respect of amendments to the protocol?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I have already said that the Bill does nothing to affect the procedures applying under the CRaG Act 2010. I have been clear on that and it is specifically in front of me as I speak.

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[Lord Ahmad of Wimbledon (Con)]

My Lords, I will not go into the speculative nature of what each devolved Administration will say, but we have great resilience and passion within our devolved Administrations and I am sure that, as discussions and negotiations progress, both the Government and your Lordships’ House will be very clear about what the Administrations think.

[Lord Kerr of Kinlochard (CB)]

The constitutional point is clearly the huge point here; mine is a minor addition. Would the noble Lord look at Clause 22(2)(a) and (b) and put himself in the position of an EU negotiator? Would he willingly come to an agreement with the British if they had just given their Ministers the power, without any parliamentary oversight, to make any provision they wish, notwithstanding that it is not compatible with the protocol or any other part of the EU withdrawal agreement?

As the negotiator contemplates trying to find practical solutions to make the protocol less burdensome, the negotiator is confronted on the other side of the table by a Government who are taking to themselves the right to change anything in the withdrawal agreement without consulting Parliament. I think as a minimum—and I put this very mildly—that does not improve the chances of the negotiations succeeding, which is why I think so many in Brussels believe that if we proceed with this Bill, the talks, the negotiations and the consultations will not succeed.

[Lord Ahmad of Wimbledon (Con)]

That was almost a rhetorical question being posed to me. What I can say in response is that the engagement we are having with the European Union is—as I have said before, and I would be very up front and honest if this was not the case—being done constructively. The EU understands and appreciates the basis of why we are seeking to do this. It also understands that this Bill is being scrutinised, as is happening this evening, and that we are continuing to work in terms of constructive engagement.

As I have said before, with the Commissioner visiting the UK, the engagement between my right honourable friend and Commissioner Šefčovič is in a good place in terms of the level of engagement, in both tone and substance. I cannot go further than that. The noble Lord is very experienced in all things diplomatic and, indeed, is a veteran of the EU Commission. I am not going to speculate on what an EU Commissioner or an EU negotiator will say because I have never been one.