European Union (Withdrawal) (No. 5) Bill

Debate between Lord Pannick and Baroness Neville-Rolfe

Committee: 1st sitting (Hansard): House of Lords
Monday 8th April 2019 Lords Chamber

[Baroness Neville-Rolfe (Con)]

My Lords, Amendment 4 seeks to insert a restriction on the date referred to in line 10:

“which must not be later than the end of the 2019/20 financial year”.

This may in practice be a variation on the provision proposed by my noble friend Lady Noakes in her amendment, but, as I explained at Second Reading, it is born out of frustration at not being able to table specific amendments on financial impact.

I want to draw attention to the fact that this Bill—agreed by all to be a constitutional innovation—is not the subject of a money resolution, as the Speaker decided in the other place. Equally pertinently, it has no impact assessment, and yet it could bring about a delay in Brexit without end or resolution, which could be extremely costly to this country.

Whatever one’s views on Brexit, it must surely be common ground that altering the date of the event will have financial consequences. I accept that some of the costs will be negative and some will be positive, but the longer Brexit drags on, the more the cost of uncertainty for all economic players and the extra cost to the Treasury in payments to Brussels will weigh against the benefits of avoiding no deal.

Although we cannot persuade the Speaker of the House of Commons to change his mind on a money resolution, I believe that the promoters of the Bill should work up an impact assessment, which would cover some of the same ground. I also believe that adding a date gives the Government an incentive finally to resolve matters. Alternatively, if the promoters will not produce an assessment today, one should be required when the Government use the power to define the length of an extension in their statutory Motion.

Let us look at some of the costs of the new approach, as the costs of no deal, now threatened for 12 April, have been well articulated already and are well understood. As a businesswoman, I know that they are real worries and that they are especially acute in farming, the motor industry and industries such as food which depend on just-in-time supply chains and mutual recognition of labelling. But there is also a huge cost to uncertainty. There are literally billions of pounds which business is waiting to invest once, but only once, the Brexit uncertainty disappears. This could be a great driver of growth and productivity, because the combination of low capital investment and cheap, flexible labour from the EU is a key reason why productivity is flatlining, despite an increase in infrastructure, digital and R&D investment by this Government.

In other sectors such as financial services, which now represent a very large percentage of GDP, the critical thing is to turn the political declaration into a free trade agreement with the EU 27. Unfortunately, the Bill as drafted could allow the EU 27 to delay negotiations to the point where the resulting uncertainty has allowed it to steal more and more of our market. The beauty parade to attract investment which would have taken place in the UK to go to Paris or Milan is very energetic. We heard in the EU Financial Affairs Sub-Committee last week how jobs and work are moving, never to return, to Frankfurt, Dublin, Amsterdam, Brussels and elsewhere, even if we stay in the EU.

I feel that the Brexit process has lacked transparency from day one. If there was a fuller and more honest discussion of the complexities of what is planned when and of the likely implications, more dynamic analysis, objective pros and cons, both economic and political, and less of Project Fear, the country would be less divided and perhaps less critical of what we in Parliament have achieved.

There is another reason why a system of financial assessment and timetable constraints is desirable. We will have let the genie out of the bottle if this rushed, defective and uncosted Bill is passed. I fear very much that it will act as a precedent for future Private Members’ Bills even more financially damaging, such as on the regulation of utilities or whatever. This is a constitutional revolution and, as I said last week, there will be no way to hold Back-Bench sponsors to account if the mechanism in such a Bill causes damage.

As my noble friend the Leader of the House just said, it is important not to set a precedent. The Bill is about stopping a premature no deal, for which I have some sympathy, but for the reasons I have stated the Bill needs amendment. I would be glad to hear from someone among the opposition promoters—although I am not sure who; perhaps the Deputy Leader of the Opposition the noble Baroness, Lady Hayter, who has always supported impact assessments, or another of her colleagues—on how we might meet some of these concerns about proper assessment. My noble friend the Brexit Minister may also be able to think of a way to do so.

Given our often tedious scrutiny role—I am afraid that this is a technical point, and some may feel it is tedious—it was cheering to hear the Secretary of State for Exiting the European Union express the expectation that this House would correct the flaws in the Bill. That is what we need to do today. I beg to move.

[Lord Pannick (CB)]

My Lords, I oppose the amendment. It would frustrate the very purpose of the Bill, which is to leave it to the House of Commons to identify what it thinks is the appropriate date.

Electronic Communications and Wireless Telegraphy (Amendment etc.) (EU Exit) Regulations 2019

Debate between Lord Pannick and Baroness Neville-Rolfe

Thursday 7th February 2019 Lords Chamber

[Baroness Neville-Rolfe (Con)]

Unfortunately we do not have a satisfactory or agreed Brexit deal and we need a no-deal SI here and indeed in a number of other areas, so I support the Government on that. However, I would like to pick up a point made by the noble Lord, Lord Foster, on roaming, which I understand is broader than this SI. If this is to be a commercial decision in future for the mobile operators in the event of no deal, as we heard earlier, can the Government seek voluntary assurances from them that they will continue to incorporate overseas calls and internet access into their contracts? I have that facility from Three and it includes the EU and indeed the US, and I do not think the company is planning to change that. However, in addition to the consumer triggers that are being introduced and the very good provision on inadvertent Republic of Ireland roaming, I think Ofcom could require the operators to make a clear statement of their intentions in this area on such calls in the EU, and I think it should look at the ability of consumers to switch from deals that turn out to be bad as a result of the change.

[Lord Pannick (CB)]

My Lords, I support the noble Lord, Lord Foster, in the concerns that he has raised. It is not just the Minister in the other place who says it is important for Ofcom to benefit from the continuing exchange of best regulatory practice; it is in paragraph 7.35 of the Explanatory Memorandum:

“However, the Government recognises that Ofcom would benefit from the continued exchange of regulatory best practice with other national regulatory authorities and the exchange of information about electronic communications matters more generally”.


The memorandum goes on at paragraph 7.36 to note that,

“the BEREC Regulation presently allows BEREC to invite observers to attend its meetings, and that the new BEREC Regulation is expected to provide that the Board of Regulators, the working groups and the Management Board should be open to the participation of regulatory authorities of third countries”—

which of course would include us in the event of no deal—

“where those countries have entered into agreements with the EU to that effect”.

My question is therefore about whether it is the intention of the Government that, in the event of no deal, Ofcom should urgently seek from other EU states an agreement that will allow Ofcom to have such observer status so that Ofcom can benefit from the continuing exchange of best regulatory practice, and indeed the regulators at BEREC can benefit from Ofcom’s expertise.