Professional Qualifications and Services (Amendments and Miscellaneous Provisions) (EU Exit) Regulations 2020

Lord Loomba Excerpts

Monday 14th September 2020 Grand Committee

[Lord Loomba (CB) [V]]

I am very sorry that my microphone was not on. This legislation is of great importance alongside measures such as the immigration Bill, which is vital to the smooth running of our country as we move to a new way of co-operating, on a new footing, with the EU and associated countries. Mutual recognition of qualifications goes to the heart of sustaining our ability to accept much-needed talent and skills into our country. It is crucial that we get it right as it will affect the functioning of the economy. More importantly, it affects peoples’ lives and livelihoods—their ability to use their skills and talents to put food on the table.

This legislation has some flaws, not least that as a statutory instrument it will become law without the proper scrutiny, evaluation and debate that our place is lauded for. That allows its passage unhindered and, in doing so, risks missing some of the detailed assessment necessary to ensure good law on working practices that is fit for purpose. For citizens to easily understand it and navigate it in their search for work, and for businesses to be able to employ staff without unnecessary hurdles or red tape hampering productivity, any legislation requires clarity accompanied by good guidance. Businesses need good, clear, effective measures in place to be able to operate effectively in what is a very competitive market at the best of times. Now, with the pandemic, businesses face even greater pressure and uncertainty. Here, I declare an interest as set out in the register as the owner of a business. I understand the difficulties many businesses face.

In understanding the complexity of this legislation, take for example, the original EU directive on which existing recognition of mutuality is based. This will cease to apply to the UK once the transition period ends. This means that some parts of the directive will be inoperable as a consequence of exit and other parts will not be appropriate to retain given they are based on reciprocal arrangements with the EU, the EEA, EFTA states and Switzerland which will no longer exist.

To go some way to resolving this issue, as we have heard, in 2018 and 2019 the Government already made several recognitions of professional qualifications in EU exit instruments. The Government have since made agreements with the EU, EEA, EFTA states and Switzerland. These include provisions on RPQ that are similar to, but slightly different from, existing provisions in RPQ EU exit legislation. These provisions require this statutory instrument to give effect to these areas. This demonstrates how much legislation will need to be navigated for businesses and individuals to understand and comply with.

Further, the statutory instrument does not require a review because its impact is deemed to be worth less than £5 million on business. It states that it does not affect small businesses and that guidance will be issued. I am not sure how something like this would not affect many small businesses, often without the wherewithal to navigate the myriad provisions, and at present, it would appear that the guidance is not available. It is vital that we get this right. Business, research and educational relationships that depend on it will be affected far into the future, and a clean sweep, with a completely new Act, would have been a better option.