European Union (Withdrawal) Bill

Lord Liddle Excerpts

Wednesday 14th March 2018 Lords Chamber

[Lord Kerr of Kinlochard (CB)]

I support the amendment of the noble Lord, Lord Hain, and that of the noble Lord, Lord Browne, to which I have added my name. I do not need to say very much in support of the amendment of the noble Lord, Lord Hain, because he introduced it so clearly and fully, except to say that I agree with the noble Baroness, Lady Doocey: I cannot see any reason why the Government cannot accept the amendment of the noble Lord, Lord Hain, tonight. It seems to me that it sets out very clearly the commitments made by the UK Government, which we all agree are very important. In its second paragraph, it provides for the possibility that there might be something in the magic solutions to the border. If there were, that would be taken into account in the wording of the amendment of the noble Lord, Lord Hain. I therefore hope that the Government will accept it.

Turning to the amendment of the noble Lord, Lord Browne, my only point is that the extraordinary linguistic fudge in December is very hard for the lawyers to construe. It has been construed by the Commission lawyers in the 118-page draft withdrawal treaty, which was published on 28 February. It has been construed as requiring “a common regulatory area” in Northern Ireland and including Northern Ireland in the EU’s customs territory. Many in London have denounced these solutions; many in London and some in Northern Ireland find them unacceptable. However, they have at least tried; they have produced a draft treaty with draft clauses explaining how they think that fudge could be construed and turned into treaty language. We have not done so: all we have done is make another speech, including the same two suggestions that were made last summer, one of which the Secretary of State for Exiting the EU immediately dismissed the day after as blue-skies thinking. We still seem to be at the stage of blue-skies thinking, but next week in the European Council, we will be confronted by a draft treaty that provides a solution acceptable to some in this country but not acceptable, perhaps, to all in this country. It is half way there. I really worry that if we stick to speeches and do not produce drafts, it is very hard to see how this negotiation will reach a conclusion.

I very much support the amendment of the noble Lord, Lord Browne, and it is in the spirit of that amendment that the Government should be thinking very hard of producing the legal language that they want, and then a real negotiation could start in Brussels. Personally, I do not think that it is possible to find the legal language that matches the Mansion House speech. I believe that the only solution that is likely to be acceptable to all parties in Ireland and in this country is continuing membership of a customs union for the United Kingdom as a whole, which is, of course, what the CBI, the TUC and manufacturing industry want, and we all want for other reasons as well. We do not all want it, but on my side, we do all want it. I think that that is where it will end up. But if the Government think there is another way to go, they really need to produce the language and put it on the table in Brussels quickly.

[Lord Liddle (Lab)]

Is there not a more sinister potential interpretation of the Government’s behaviour—that they have looked into the customs partnership paper that they published in August and decided that nothing can really be made to work out of it? Therefore, their hope at the moment is that the EU 26 will force Ireland to accept some form of hard border because it is in the trade interests of the EU 26 to make sure that there is a smooth exit for Britain. Is this not an extremely dangerous situation for us in the United Kingdom and in the Republic of Ireland, in which we might end up in a situation where the EU 26 agrees to some form of hard border that then leads ultimately to a further outbreak of the Troubles?

[Lord Kerr of Kinlochard]

I would not want to attribute sinister motives to the Government—I think that somebody managed to get the word “cock-up” into Hansard the other night. Conspiracies are very rare. It is possible—and there are some who believe—that the 26 will lean on Dublin; that is perfectly possible. It is unlikely, and it is of course the case that the European Council decides by unanimity, so if one were looking for a settlement in the European Council which meant that the 26 leaned on Mr Varadkar, Mr Varadkar would have his vote and could say that he did not agree. However, I have seen no signs of the 26 leaning on the Irish. It looks to me from what Mr Tusk said when he went to Dublin the other day that we are heading for another European Council where the Irish position on the hard border and our position on the hard border are recognised by everybody. Nobody wants a hard border.

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[Lord Empey]

I am grateful to the noble Lord for that. I have to say that the chief constable was using as an example the erection of customs posts and things that used to exist in the 1950s and 1960s, as well as all sorts of other concrete establishments and so on which we are not going to have. In many respects, the United Kingdom Government have committed themselves not to produce that material at the border. Whether Brussels wants or would insist on the Irish Government doing so, no Irish Government I can conceive of would do anything of the sort. I just do not believe they would—it would be politically impossible for them to do it. Brussels may have its own objectives and determinations to protect the single market—we understand that—but when push comes to shove. I do not believe it is possible.

[Lord Liddle]

Surely it is we who have created this problem. It is not a Brussels problem—we in this country have decided to leave.

[Lord Empey]

I understand what the noble Lord is saying perfectly well. To put this into context, my party supported remain in the referendum, on a free vote. We cited two things: Scotland and the border. I have had this discussion with the noble Lord, Lord Cormack. I am not a Europhile at all—I never have been, even though I spent eight years in Brussels on the Committee of the Regions, very minor body that it is. I have some sense of the EU. But a vote has taken place, and we accept the outworkings of that vote. We are trying to get on with it and to find a solution that works for all of us.

When we talk about “the” border we must remember that it is not confined to the island of Ireland. The primary bit of the border between the United Kingdom and the Republic of Ireland is actually between Dublin and Holyhead, Rosslare and Fishguard—it is in Wales. That is where the vast majority of the problem lies, and where the bulk of the goods go in order to use Great Britain as a land bridge. The noble Lord, Lord Hain, mentioned that a very large percentage of goods that travel via Northern Ireland go to Great Britain. These are goods in transit.

Noble Lords need to appreciate what we are talking about in terms of scale. In this amendment we use the phrase, “all-island economy”. I was privileged to serve as Trade Minister and Energy Minister, and I was the Northern Ireland Minister who established InterTradeIreland, which is designed to promote trade. On taking office, I discovered that neither the United Kingdom nor the Irish Republic could agree on the amount of trade that they do, and that is still the case. In 2015, the Central Statistics Office in Dublin produced a report on goods exports classified by commodity, listing where the goods were going. Exports from the Republic of Ireland to Northern Ireland accounted for 1.6% of the Irish Republic’s total exports. The CSO also produced a report setting out the percentage of imports to the Irish Republic from Northern Ireland, including live animals and food products, and that was also 1.6%.

I had to deal with these matters for years. I set up a cross-border body and implemented the outworkings of the agreement. I think that the noble Lord, Lord Murphy, and I are the only two Members still in the Chamber tonight who were involved in the agreement. He will know the heavy lifting that had to be done by the noble Lord, Lord Trimble, who is not in his place, the noble Lord, Lord Alderdice, and others to get the agreement approved. It was approved by 71.2% in a referendum in Northern Ireland. We are talking about a referendum of 52%, but we had a majority vote of 71.2%. It was a hard slog and he knows that.

I agreed with the earlier remark of the noble Lord, Lord Kerr, that the Government have not produced sufficient hardcore copy to match the proposals put forward by Brussels. He makes a fair point. Brussels has put forward 118 or so pages. I am not asking for that but I think that we have to have a counterproposal on paper. If that happens to involve technology, so be it. I have no difficulty with that and nor does the European Union. A report was recently published in Brussels by the EU’s Policy Department for Citizens’ Rights and Constitutional Affairs, which comes under the Directorate-General for Internal Policies. It sets out what are thought to be feasible proposals involving technology and other things. We already have a currency border—Northern Ireland and the Republic have different currencies—and we have different taxes, so we are not dealing simply with a one-dimensional problem.

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[Lord Liddle]

My Lords—

[Lord Duncan of Springbank]

Perhaps I may make some progress but I will return to the noble Lord if he will allow me. We have had a very wide-ranging discussion and we will come back to his point.

As we go forward, I want to stress again that the key thing which the Government must achieve in the negotiations is an equitable, sensible and sustainable solution. A number of noble Lords have referred to certain elements which must and will appear in subsequent Bills, whether they are questions about agriculture, fisheries, broader trade or electricity. All these will fit in sensibly to those parts and the withdrawal agreement and implementation Bill will afford an opportunity for noble Lords to address all these particular points. We as a Government are determined to ensure that all the commitments on Northern Ireland and the Republic of Ireland set out in the joint report are turned into legally binding text—not just one of them. Each of them has to be a component part. All the parties involved must recognise that, to ensure that it is indeed the case. Further, we have been clear that in all circumstances we will protect the UK internal market. The noble Lord, Lord Empey, was very persuasive in the way that he set out the reality of the market as it affects the Province of Northern Ireland, and we cannot lose sight of that. Nor can we see a border suddenly appear down the middle of the Celtic or Irish Sea; that in itself would be wrong. We therefore need to find, along with the EU, an approach that works.

I turn now to the remarks made by the noble Baroness, Lady Kennedy of The Shaws. In some ways the points I am going to make echo those of the noble Lord, Lord Empey, because in certain respects the key thing will be for the two respective Governments to ensure that they create a situation in which there is a disincentive to abuse the border. That will be the first step. On the points raised by the noble Baroness about the physicality of checks and the reality of what they might look like, I wanted to be very clear about what I would say in my response, so I scribbled a note for my officials in the Box in order that I would not in any way stray on to thin ice. To be clear: there will be no impediment at the land border to the movement of people—no checks and no profiling, full stop. That is the ambition and the policy of the United Kingdom Government.

Going forward from that, I shall address the points made by the noble Baroness, Lady Smith of Basildon. She raised the question of regulatory alignment, which was covered in the joint report. It is important to recognise that alignment is about pursuing the same objectives. As my right honourable friend the Prime Minister stated in her Florence speech, it is about achieving the same goals by the same means or achieving the same goals by different means. In many respects, as a former Member of the European Parliament, I am familiar with that approach. It is like the difference between producing a regulation and producing a directive. A directive sets out clearly what the ambition should be but gives greater latitude to those to reach the particular ambition. A regulation does none of that. It is set in stone and in law and it must be followed. The noble Baroness will recognise that in the negotiations it will be necessary for both sides to achieve an understanding of what that will mean. That is because, in truth, it will affect both sides and it will disproportionately affect Ireland over the United Kingdom. That is why the negotiations will be conducted on a very sensitive and sensible footing. I do not impute the sinister motives raised earlier by the noble Lord, Lord Liddle.

[Lord Liddle]

My Lords—

[Lord Duncan of Springbank]

I should like to make some progress, so I hope that noble Lords will forgive me.

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[Lord Duncan of Springbank]

Well, I will make progress without the forgiveness of noble Lords on this occasion.

On Amendment 187A in the name of the noble Baroness, Lady Doocey, and Amendment 215 in the name of the noble Lord, Lord Browne of Ladyton, the joint report makes clear the Government’s commitment to avoiding a hard border, including any physical infrastructure or related checks and controls—a point made on more than one occasion by my right honourable friend the Prime Minister, most recently in her speech on 2 March. That is the policy of Her Majesty’s Government. We have put it before noble Lords as a statement of the policy; the interpretation of it must rest in noble Lords’ hands, but that is the policy we put forward.

Amendment 198 was introduced by the noble Lord, Lord Hain, in a very expansive and careful manner; I believe the entire House appreciates that. The Government made clear during the Bill’s passage in the other place that we will include an appropriate provision in the withdrawal agreement and implementation Bill iterating each element of the agreement we reach, including the protections set out in the joint report. Passage of the implementation Bill will provide an opportunity for noble Lords to scrutinise the specific provisions envisaged in today’s amendment as they appear in that Bill. There will be an opportunity at length, I hope, to address these point specifically.

I am conscious that the issues raised by the noble Baroness, Lady Suttie, require some attention. As I say that, I am conscious that the important issue she raised is about how we ensure that the children of Northern Ireland—indeed, of the entire United Kingdom—understand what we do here, not just in your Lordships’ House but in the other place too. To some degree, explaining what we do and why we are trying to do it is incumbent on each of us. The key thing will be ensuring that children can be part of that ongoing discussion and dialogue and see that making laws is not an easy process, responding to democratic challenges is not simple and sometimes there will be positions that are challenging to hear but none the less must be taken forward. A number of noble Lords have raised the issue again of the nature in which the Brexit vote took place.

I listened to the remarks of the noble and right reverend Lord, Lord Eames, who can often calm the House with his careful and considerate remarks. He captured that very well when he reminded us of the challenges we face in trying to move this forward. We need to be careful because a generation awaits the outcome of what we do here today and what the Government do in ongoing negotiations. There is no doubt about that. That is why, as I have said on more than one occasion in your Lordships’ House, the key must always be to secure an Executive in Northern Ireland who will be part of that process. Those voices are missed from the processes we are taking forward at this time.

As we give consideration to the appropriateness of the amendments, I am also aware that there will be opportunities for certain aspects of them to be addressed more head-on as we move through the negotiations. In putting these points before noble Lords, I hope I appear to have been, in some respects, more focused on the amendments than the broader discussion, but I do not doubt that there will be opportunities for further broad discussion. On this occasion, I hope that the noble Baroness will find it appropriate to withdraw her amendment.

[Lord Liddle]

Before the Minister sits down, I think he will allow me to make my point now. I want to say how much I welcome his tone and the spirit in which he has approached the House on this. I think he is a very constructive Member of the Front Bench opposite. In that context, I want to raise my concerns.

I am on the EU Select Committee. We have taken a lot of interest in the Irish question and produced reports. I am very concerned by the fact that the Government produced their proposals on a customs partnership last August and made a commitment in the December consensus, but there is absolutely no evidence that the Government have come forward with any alternative proposals on the border to those of the Commission. In circumstances where they have had all this time and no alternative proposal has been produced, a reasonable person can conclude only that the Government have concluded that there is no alternative to remaining in the customs union and the only way they have of trying to spike being cornered in this way is to try to get the EU 26 to tell the Irish that they have to back off a bit. Is that sinister? After all this delay and the lack of information on what the Government are doing about the border, it is not sinister—it is a reasonable conclusion.

[Lord Duncan of Springbank]

I thank the noble Lord for his final comments and I am sorry if I appeared to lack politeness in not allowing them earlier.

There are negotiations that are yet to come. I do not believe it is useful in negotiations to place all your cards face up. In concluding, if I may, I will cite the words of the great country and western singer Kenny Rogers. In negotiations,

“You’ve got to know when to hold ’em, know when to fold ’em,


Know when to walk away, know when to run”.