European Council

Lord Newby Excerpts

Monday 18th December 2017 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating the Statement. The past couple of weeks have been very eventful for the Government. The Prime Minister has travelled to Brussels three times. On the first occasion, she returned empty-handed because of her partners in the DUP. The second was a last-minute dash across the channel for breakfast with Barnier to save the deal that allowed for progress to phase 2. Now, on the third occasion, she returns home early as the UK once again has to sit out the second day of a major EU summit.

When the Prime Minister returned last week to make her Statement to Parliament, for one, brief, shining moment, her Cabinet was united. Some on the Tory Benches even found themselves echoing the warm words of EU figures such as Donald Tusk and Jean-Claude Juncker. We all paid tribute, quite rightly, to the Prime Minister’s tenacity in securing a sufficient-progress decision, first from the Commission and then from the European Council.

Unfortunately, the Cabinet unity was short lived and gave way to a weekend of unsanctioned briefings and policy proposals. Yet again, the Foreign Secretary used a newspaper interview to engage in an open conversation with the Prime Minister, with a warning that she should not seek to maintain full regulatory alignment with the EU to avoid the UK becoming what he described as “a vassal state”. The Environment Secretary suggested that the Tories should abandon their manifesto commitment to keep EU-derived employment and workers’ rights and scrap the vital protections contained in the working time directive. Such briefings from Cabinet members are not only unhelpful and undermine the Prime Minister and her Government, but could damage the UK’s wider interests.

Despite the positive news that EU leaders gave formal approval for the launch of phase 2 talks, the summit served as a reminder that, while we focus on our withdrawal from the EU, the EU is focusing on its own challenges and shaping its own future. Important discussions took place on co-ordinated efforts to stem illegal migration; the need to increase the resilience of the economic and monetary union; education and culture; and climate change. While Theresa May confirmed the UK’s intention to remain a part of Erasmus+ until 2020, the EU27 took decisions on the longer-term future of that programme and many others. The conclusions also feature important commitments to the implementation of the Paris agreement, the continuation of sanctions against Russia, and restating the agreed position on Jerusalem and a two-state solution. To give the Prime Minister credit, she has spoken out on these issues, but will the Leader tell the House whether President Trump has returned the Prime Minister’s call from last week? If he has, what discussions took place regarding Israel?

It is quite an irony that while Michael Gove prepared to launch his broadside on EU-derived workers’ rights, EU members committed to implementing the European pillar of social rights, accelerating important social initiatives already in progress at national and EU levels, and taking renewed action to tackle the gender pay gap. I suspect that the Prime Minister might have a particular interest in the last area, given last week’s revelations of a significant gender pay gap among special advisers at No. 10.

Returning to the Brexit negotiations, it is clear that the second phase will be challenging and needs good will and trust on all sides. In that respect, I repeat my comment from last week, to which I have already alluded: the Cabinet must stop freelancing and the Prime Minister must insist that her Ministers back her. David Davis’s mixed and contradictory messages last week were unhelpful. I hope that at the next Cabinet meeting, which I think is tomorrow, the Prime Minister will be able to ensure that all Cabinet members are prepared to accept the principle of collective responsibility and accountability, even during the upcoming Christmas Recess.

Tomorrow, the Cabinet discusses our future relationship with the EU. Perhaps because of deep divisions, it has taken 18 months for that discussion to take place. The clock is ticking down. It is clear that a transitional period will be possible only if there is high-level agreement on a future relationship that can be struck in the EU’s original timescale, but with phase 2 talks beginning shortly it is essential that these discussions are productive and that the Government can set out their end goal, engage with the public to explain it, urgently communicate it to the EU and remain committed to securing that outcome.

Assuming that consensus is achieved at tomorrow’s Cabinet meeting—that might be a big “if”—will the Minister confirm when the UK expects to communicate its detailed wish list to Parliament and to Michel Barnier’s team? The noble Baroness will understand why I raise this key point again: businesses are making decisions now about their future regarding location and employment issues. Will she confirm the terms that the UK is seeking for the transition period? In the light of the comments made from the EU side that it would not extend transitional arrangements to Gibraltar, will she confirm that the Government will challenge that position?

The noble Baroness referred to Northern Ireland in the Statement. What we have heard on Northern Ireland so far has been nothing beyond the aspirational. Will she tell us what practical considerations have been made and what decisions are being taken to ensure there is not a hard border, given the Government’s commitment to saying it cannot remain in the single market and the customs union? Some of us are struggling to understand how that can be achieved.

The Prime Minister’s very welcome commitment on Erasmus+ was in the context of only the current Budget. When can universities and students expect certainty on their ability to participate in the programme post-2020?

Last week, the noble Baroness disappointingly confirmed that the joint report does not cover onward movement of UK citizens living elsewhere in the EU but said that this would be revisited in phase 2 of the negotiations, yet today’s Statement refers to UK citizens’ rights being “protected”. Can she reflect on that? “Reciprocal agreement” implies equal status between citizens of the EU and citizens of the UK. However, a Commission memo published on 12 December suggests that UK citizens will have to rely on limited rights under the Blue Card directive or the ICT/students and researchers directives to settle in another member state. I would be grateful if the noble Baroness could comment on this and give a definitive answer on whether the Government expect to maintain and secure full onward movement rights for UK citizens in the EU. If not, the Statement is possibly not being entirely accurate in saying that UK citizens’ rights will be fully protected.

The Prime Minister said in her Statement that until the UK withdraws from the EU, it continues to play a full role in meetings. Can the noble Baroness therefore say whether the Fisheries Minister, George Eustice, last week left the Agriculture and Fisheries Council early to attend votes in the Commons? If so, has there been any detrimental impact on the UK fishing fleet or has it lost out on access to any EU quotas as a result? Or did it really not make any difference?

[Lord Newby (LD)]

My Lords, it is the time for end-of-term reports, and this Statement represents that of the Government in respect of Brexit. Like the assiduous student that she was, the Prime Minister has carefully presented her course work. She has one agreement to show for almost nine months of negotiations since the triggering of Article 50. It is in three parts. The Government have agreed to honour their financial commitments—good, but this was merely bowing to the inevitable. They have agreed to allow EU migrants to stay in the UK—good, but this principle was never seriously in contention. They have kicked the Northern Ireland problem down the road—bad, but given the fundamental incompatibility contained in the Government’s position, this is an inevitable delay until or unless the Government work out what they want their trading relationship with the EU to be.

In terms of legislation, we are to have at least eight Brexit Bills and 1,000 statutory instruments before March 2019, and in reality many of these will be needed well before then. Yet not a single piece of primary legislation, far less a single statutory instrument, has been enacted and no Brexit-related Bill has even completed its passage through a single House. It is extremely difficult to see how the Government plan to get all this legislation through in a timely manner, but given the importance of the subject matter, can the Leader of the House give us an assurance that the Government will produce their proposals in time for both Houses to deal with them properly and within the normal conventions on timetabling?

As far as the future trading relationship is concerned, and indeed on a host of other issues, including the Government’s attitude to ongoing migration to and from the EU, it is pointless pressing the Leader on the Government’s attitude because they literally have no policy. Can she, however, confirm that last week’s agreement means that Northern Ireland citizens who retain their EU citizenship will have more rights than other UK citizens? If, as I believe, this is so, it will be deeply offensive to many people. Given that the noble Lord, Lord Callanan, said to your Lordships’ House last Monday that,

“we are not ruling out”—[Official Report, 11/12/17; col. 1368.]

UK nationals retaining EU citizenship, will the Government now positively propose to the EU that UK citizens will be able to retain their EU citizenship so that the majority of us are not reduced to second-class status in comparison with our Northern Ireland compatriots? Given that when the Government do eventually adopt a policy on our future trading relationship with the EU this will be of fundamental importance to the Brexit negotiations, and indeed the country’s position going forward, will the Leader of the House give an assurance that both Houses of Parliament will be able to have a full debate and vote on the Government’s proposals before they are transmitted to the EU? Would not anything less be inconsistent with Parliament taking back control?

In order that people at large might have a clearer understanding of the consequences of Brexit for the economy, will the Leader now seek to persuade the Prime Minister and the Brexit Secretary to publish the infamous sectoral reports? They contain nothing which is commercially sensitive or could jeopardise our negotiating position and there is no reason why everyone should not be able to see them. The current arrangements for parliamentarians to see them are disproportionately restrictive and should in any event be relaxed, but the documents should simply become publicly available. The only conclusion one can draw from the Government’s current approach is that they do not want people to see how complicated Brexit will be in practice or to understand the depth and beneficial nature of our current economic relationships with the EU.

Finally, will the noble Baroness confirm the estimate in today’s Financial Times that Brexit is already costing, not benefiting, the UK some £340 million a week, as a result of lower growth which has flowed from the referendum result? It is very tempting at this stage of the term to give the Government an overall mark for their term’s work, but I fear that that would be embarrassing. I simply pose the question asked by many a frustrated and disappointed supervisor: “Don’t you think it would be better if you took another course?”.

[Baroness Evans of Bowes Park]

My Lords, I am grateful to the noble Baroness and the noble Lord for their comments, but I am somewhat disappointed that they do not seem to have fully welcomed the fact that we have made sufficient progress and that we can now move to talk about the future. They have been saying that this is what they want for months, yet now we achieve it, unfortunately it seems that they are not as keen as perhaps they said they were originally.

To answer the noble Baroness’s question, we will start talking to the EU 27 about the shape of the future relationship and the details of the implementation period straightaway and the EU will be producing guidelines in March to further aid those discussions. The noble Baroness also asked about Gibraltar. I can confirm that the UK Government are committed to engage with the Crown dependencies and overseas territories, including Gibraltar, of course, as we prepare to exit the EU, to ensure that their interests and priorities are taken into account. We will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of any other state against their wishes. We had the fifth meeting of the UK-Gibraltar ministerial forum on 11 December with DExEU and Treasury Ministers taking part alongside the Chief Minister, Deputy Chief Minister, Financial Secretary and Attorney-General of Gibraltar, so I can assure her that we have Gibraltar’s interests at the centre of our thoughts and will continue to do so.

The noble Baroness asked about Erasmus. As she rightly acknowledged, the Prime Minister announced our intention to continue to participate in the Erasmus programme for at least another three years, until the end of the current budget period. Anything further than that is for the future negotiations, but that commitment shows how much we value the Erasmus programme and understand its importance. In relation to onward movement, I fear that I can say no more than I said last week: this was an issue we were hoping to resolve, it has not yet been resolved but we have been very clear that we want to come back to it at the next stage of the negotiations. On her question about the Fisheries Minister, he certainly managed to balance his responsibilities in representing the UK in the recent discussions with taking his role as a parliamentarian extremely seriously.

The noble Lord, Lord Newby, asked about citizens’ rights. As we have said all along, we wanted a reciprocal agreement on citizens’ rights and that is what we have agreed. We now want to make sure that we turn the agreement into the legal agreement we will see in the withdrawal and implementation Bill. He asked about the sectoral reports. Everyone can see them, they are available for anyone to see and I certainly encourage all noble Lords to do so.