European Union Withdrawal (Consequential Modifications) (EU Exit) Regulations 2020

Lord Lexden Excerpts

Monday 30th November 2020 Grand Committee

[Baroness McIntosh of Pickering (Con)]

I want to take this opportunity to thank my noble friend for introducing the regulations before us and for the fact that they follow the affirmative procedure, enabling us to have a small debate on them.

In its 31st report, the Secondary Legislation Scrutiny Committee devoted just one paragraph to these regulations:

“This is an important technical instrument, necessary to ensure that the statute book operates correctly after Implementation Day.”


It concludes:

“The instrument provides a general gloss to ensure that the correct interpretation of any EU instrument applies. Cabinet Office states that statutory instruments being prepared by other departments in order to implement the Withdrawal Agreement, including the Northern Ireland Protocol, are relying on these glosses.”


I am somewhat confused as to what “gloss” means. To me, if you put a gloss on something, it potentially puts a spin on it. I could not find in the document that this was a term my noble friend’s department used—probably for a very good reason. I would be interested to know what gloss he puts on that interpretation in the report.

Obviously, we discussed these issues at some length during the passage of the two Acts to which my noble friend referred, and the instrument today helpfully sets out the sources of retained European law. One is missing, namely case law from the European Court of Justice, presumably up to the end of January this year but potentially up to the end of December this year. It is not clear to what extent we will have any regard to EU case law as agreed by the European Court of Justice. Obviously, we will not refer cases, because the Government have been very clear about that in the past. However, there may well be an expectation among some companies that feel that they are affected by this statutory instrument that they would have the right to rely on that case law in a UK court. I would be interested to know whether that is true in my noble friend’s view when he comes to sum up.

Another category of EU law on which I questioned my noble friend and his colleagues during the passage of those two Acts, and which particularly interests me, relates to the environment and agriculture generally, where these instruments of EU law were agreed but were not implemented by the end of 31 January 2020. To be honest, I do not have a clue whether they are ambulatory or non-ambulatory, but I would be very interested to know what decisions have been taken in regard to the applications of those instruments, whether they will be applicable to citizens and companies in this country and whether they can rely on them going forward.

Paragraph 2.8 of the Explanatory Memorandum, on page 2, helpfully says:

“The interpretation legislation amended by this instrument is not EU law; it is domestic legislation, which is being updated in consequence of”


the two Acts to which my noble friend referred, as he said. Paragraph 6.4 on page 4 sets out retained EU law without, as I say, including what I would consider to be EU law, namely the case law that has been decided during the course of this year. Paragraph 6.7 on page 4 states that the two Acts

“provide temporary powers to make provisions that Ministers consider appropriate in consequence of those Acts.”

In that regard, does my noble friend expect to come back at a future date to repeal other provisions of EU law, if he and his department intend to keep this under review? Paragraph 7.4 states:

“Where there is a dual meaning, the interpretive provision applicable to references to EU legislation that have effect as relevant separation agreement law will apply to the extent that the EU legislation takes effect as relevant separation agreement law.”


Paragraph 7.5 continues:

“These interpretive provisions are needed to ensure that the legislative framework for the Withdrawal Agreement and the Protocol on Ireland and Northern Ireland operates effectively.”


Paragraph 7.7 states that Regulation 3 makes amendments to the European Union (Withdrawal) Act 2018

“to provide how existing ambulatory references to EU instruments that will have effect as relevant separation agreement law are to be interpreted after IP Completion Day. Ambulatory references are references to EU instruments that automatically update when the EU instrument is updated.”

I do not intend to use the full time that has been generously allocated to me, but I will end on a general question. With all interpretations of EU law that is now deemed to be retained EU law for UK purposes, in the event of a disagreement, who will interpret the provisions? Will it be the Minister’s department that is the ultimate arbiter, or will recourse to the courts be required? I understand that, probably still, one potential niggle that might be delaying the conclusion of a deal with the EU 27 this week—perhaps he could comment on this—is what the dispute resolution mechanism will be. Is there any update in that regard?

With those few words, I welcome this opportunity to consider the instrument that the Minister was kind enough to set out this afternoon.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

The noble Lord, Lord Bhatia, is having technical difficulties. In the circumstances, we will move on to the noble Lord, Lord Thomas of Gresford.

[Lord Thomas of Gresford (LD) [V]]

In 32 days’ time, the whole body of law concerning our relationship with the European Union, developed over 48 years, will disappear, and we shall be entering new legal territory. Retained European law will be added to our domestic law—a whole body emanating from the directives and regulations that we have hitherto followed through our membership of the European Union. This was the effect of the European Union (Withdrawal) Act 2018. As I understand it, if we wish in future to depart from or change anything in retained EU law, we will do it by the normal processes of Westminster legislation. Ambulatory provisions in European regulations, which provided for an automatic update in accordance with changes in European law, will cease.

All that was difficult enough, but understandable. However, as a result of the withdrawal agreement that was finally concluded earlier this year, the European Union (Withdrawal Agreement) Act 2020 was taken through Parliament. One purpose of that Act was to replace references to exit day with “IP completion day”; the changes made by the 2018 Act were, therefore, pushed back from exit day—the day when we left the European Union, at the end of last January—to 1 January next.

Another purpose of the 2020 Act was to fulfil the promise made in the Conservative 2019 manifesto that all British courts, down to and including magistrates’ courts, could throw off the burden of EU case law and principles, as interpreted by the European Court of Justice. The thinking behind that was not to promote the clarity and stability of our domestic law: it was, as I said in Grand Committee last week, the expression of the Conservative Party’s allergy to the European Court of Justice—an itch which has to be scratched.

As the 2020 Act required, there was extensive consultation of 73 bodies, encompassing the whole legal and judicial community. The manifesto commitment had by this time been watered down to a proposal that only the courts at Court of Appeal level should be able to depart from the precedents set in Europe. Only 20% of the consultees were in favour of this proposal, as we discussed last week; 80% were either wholly against it or did not support it. The Minister will no doubt be interested to hear that the noble and learned Lord, the Advocate-General for Scotland, in introducing the rejected proposals last week, nevertheless told us that we could be reassured by the fact that consultation had taken place. He did not actually mention the result of the consultation. Well, there is no such problem here, as there has been not the slightest consultation over these regulations—yet they, too, are supposed to introduce sweetness and light.

Unfortunately, the 2020 Act introduced the new concept of the “relevant separation agreement law”, which provides that any question as to the validity, meaning or effect of any “relevant separation agreement law” is to be decided in accordance with the withdrawal agreement and the like agreements and is to be consistent with various articles of the withdrawal agreement—and not just the current articles that are in issue, because the definition of “relevant separation agreement law” is widened by a final coda saying

“as that body of law is added to or otherwise modified by or under this Act or by other domestic law from time to time”.

Any lawyer trying to advise a business client as to his position with regard to, say, contractual or intellectual property rights already has a difficult task. Any individual embarking on litigation to sort out a dispute faces extensive legal costs and untold worry.

However, that is not the end under these regulations. Paragraph 6.6 of the Explanatory Memorandum tells us that the provisions of the European Union (Withdrawal) Act and the amendments made to that Act by the 2020 Act

“mean that it is possible for EU instruments to form part of retained EU law for some purposes and have effect as relevant separation agreement law for other purposes. This means that after IP Completion Day”—

in 32 days’ time—

“references to EU instruments in domestic legislation can have a dual meaning. For example, referring to the original version of the EU instrument that has effect as relevant separation agreement law for some purposes and referring to the domesticated version of the EU instrument that forms part of RDEUL for other purposes.”

So, in these regulations we are now importing into our domestic law retained EU law as amended by relevant separation agreement law, and any future amendment of it, as interpreted in the articles of the withdrawal agreements—and references to EU instruments in domestic law can have a dual meaning. Incidentally, the Northern Ireland protocol is part of the withdrawal agreement and is already under fire, with power to make regulations to break the law included in the UKIM Bill as drafted. We will have to see how that turns out.

For the sake of the sanity of the Court of Appeal and the Supreme Court, will the Minister kindly tell us how this dual meaning is supposed to take effect? What exactly are the separate dual meanings and for what purposes will one meaning be applicable in relevant separation agreement law and one in the domesticated version that is to form part of the retained domestic EU law? I cannot think of any legislation with a dual meaning for the same wording in the same provision which is to be interpreted differently in different legal contexts. I am willing to be enlightened.

I cannot expect the Minister to sort out this mess at the Dispatch Box, but I would be grateful if a memorandum could be prepared and published to make the position clear for lawyers advising their clients and judges seeking to interpret already complicated provisions of law. In any sensible legislative body, this instrument would be withdrawn and reformulated. Unhappily, so ineffective and weak are the procedures of the United Kingdom Parliament in scrutinising secondary legislation—as we are supposed to be doing now—that this instrument will go through in its present form. God help those who have to interpret it.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I call again the noble Lord, Lord Bhatia, in the hope that we shall be able to hear him this time.