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

Lord True Excerpts

Monday 30th November 2020 Grand Committee

Moved by

[Lord True]

That the Grand Committee do consider the European Union Withdrawal (Consequential Modifications) (EU Exit) Regulations 2020.

[The Minister of State, Cabinet Office (Lord True) (Con)]

My Lords, the Government have already undertaken extensive work to provide for a functioning domestic statute book by 31 December. Ahead of our exit from the EU on 31 January, the Government made a significant amount of exit-related legislation, including more than 630 statutory instruments. The Government continue to deliver the secondary legislation required to ensure a functioning statute book at the end of the transition period, so we are able to seize the opportunities of being an independent sovereign nation.

This instrument is a clear example of that. It makes various consequential amendments and repeals in respect of retained EU law, relevant separation agreement law and other EU-derived domestic legislation. I will explain this in further detail in a moment, but in short, it is highly technical and does not implement any new policy. It will ensure that the UK statute book works coherently and effectively following the end of the transition period.

The instrument was laid by my right honourable friend the Chancellor of the Duchy of Lancaster in exercise of temporary powers provided for in the EU withdrawal Act 2018 and the EU withdrawal agreement Act 2020. These powers allow Ministers to make provisions that they consider appropriate in consequence of those Acts. These are standard consequential powers that are commonplace in legislation. Such powers are inherently limited, their main expected use being for matters of a technical nature. This instrument is no exception.

The Government have already made several exit-related consequential statutory instruments in recent years, which were needed as a result of the European Union (Withdrawal) Act 2018. However, since those instruments were made, we have left the EU with a deal—the withdrawal agreement—and entered the transition period. The statutory instrument we are discussing today includes provisions required as a result of the withdrawal agreement and the legislation that implemented it: the European Union (Withdrawal Agreement) Act 2020.

The main changes arising from the European Union (Withdrawal Agreement) Act 2020 are: it introduces the transition period and delays the commencement of exit-related statutory instruments until the implementation period completion day; it provides that retained EU law comes into effect on IP completion day instead of exit day; and it establishes relevant separation agreement law. In the light of the introduction of relevant separation agreement law, the instrument clarifies how references in UK legislation to EU instruments are to be interpreted after IP completion day. This includes how references to EU instruments that form part of relevant separation agreement law should be read.

The amendments made to the 2018 Act by the implementation of the withdrawal agreement 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, references to EU instruments in domestic legislation can have a dual meaning. This instrument makes interpretation provisions to remove uncertainty about which version of an EU instrument applies: the retained version or the version applied by the withdrawal agreement. This ensures that the correct interpretation of the EU instrument applies following the end of the transition period and removes room for confusion or uncertainty.

At this point, I draw your Lordships’ attention to the fact that, although the negative procedure could have been used for making this instrument under the consequential powers, we are following the affirmative procedure. This is to provide the opportunity for parliamentary debate.

To make these interpretive provisions, the instrument makes minor technical amendments to primary legislation, including the 2018 Act, the Interpretation Act 1978 and the latter’s devolved equivalents: the Legislation (Wales) Act 2019, the Interpretation Act (Northern Ireland) 1954 and the Interpretation and Legislation Reform (Scotland) Act 2010. Although the Government are not required to seek consent from, or consult with, the devolved Administrations on the provisions included in this instrument, there was extensive engagement at official level prior to the laying of this instrument to make sure that it worked effectively for the devolved legislatures. I note our gratitude to the devolved Administrations for their constructive collaboration on both this instrument and the wider body of readiness secondary legislation that is needed by the end of the year.

The instrument also makes technical repeals to redundant provisions within primary legislation arising from the European Union (Withdrawal) Act 2018, primarily due to the fact that it repealed the European Communities Act 1972. The 2018 Act provided for the repeal of the amended provisions of the 1972 Act, but not the amending provisions that lie behind them. As a consequence of those repeals, the amending provisions are redundant. Without these regulations, this legislation would continue to sit meaninglessly on our statute book; repealing it ensures that the statute book remains clear and effective.

As well as repealing redundant legislation, this instrument also makes consequential amendments to the European Union (Withdrawal) Act 2018 (Consequential Modifications and Repeals and Revocations) (EU Exit) Regulations 2019 to reflect the fact that they come into effect on IP completion day rather than exit day, and ensure that they operate effectively in the light of this.

I hope that noble Lords therefore agree that these draft regulations perform a small but worthwhile role in our preparations for the end of the transition period and demonstrate the Government’s commitment to ensuring certainty and clarity in the UK’s statute book. I beg to move.

--- Later in debate ---

[Lord True (Con)]

Well, my Lords, I am loath to speak for any lawyer, let alone every lawyer in the land. I hope this SI proves to be the clarifying instrument that we hope it is.

I was asked a number of questions, not all of which, as was gracefully conceded, may be answerable on the spot. Regarding the last question, about the Lugano framework, I am certainly not advised on that currently and will have to respond.

On the question of “gloss”, it is a term used frequently by parliamentary counsel meaning “a modification to how legislation is read”. In terms of the gloss as used in the report referred to, the interpretive glosses provided by this instrument provide general interpretive rules for how cross-references to EU instruments should be read. This means that interpretive provision does not need to be provided in other legislation because it is already provided by these glosses and so ensures consistency.

I was asked whether the SI has financial implications. It does not.

I was asked about the consequence of importing EU retained law into domestic law. As a result of the introduction of relevant separation agreement law, interpretive provision needs to be made so that it is clear how references to EU instruments that form part of relevant separation agreement law are to be read. Essentially, references to EU instruments that form part of relevant separation agreement law are to be read as they are applied by the withdrawal agreement. Interpretive provision for retained EU law has already been provided. This SI makes amendments to these provisions to ensure that the interpretive provisions for relevant separation agreement law and retained EU law work together. I hope that that answers the question asked by the noble Lord, Lord Thomas of Gresford. If not, I will ask my officials to see whether any further information needs to be added.

I was asked about consultation. Obviously, I said in my opening speech that it is an accepted principle in terms of these consequential amendments that it is possible for secondary legislation to amend primary legislation in a number of confined technical cases such as this. I do not have the full details on consultation with all the devolved Administrations although I am assured that they took place.

Obviously, the European Union (Withdrawal) Act 2018 gives the United Kingdom Government the power to make statutory changes to correct deficiencies in the statute book that arise as a result of the UK leaving the EU. Ministers can use those powers in relation to devolved matters but have committed not to do so normally without the agreement of the relevant DAs. These commitments do not extend to all powers in the EUWA and the withdrawal agreement Act. There are the specific powers that I have just referred to, under which secondary legislation can be made in devolved areas without consent from or consulting with DA Ministers where those changes are technical in nature.

However, in relation, for example, to the case of Wales and in fact more generally, I understand that legal officials in my department consulted with the devolved authorities’ lawyers and their respective parliamentary counsel throughout the drafting process. Initial correspondence was sent on 6 August, with the first draft of the statutory instruments shared on 19 August, and the final draft of the SI takes into account the devolved authorities’ comments and drafting suggestions. Policy officials shared details of the statutory instrument on 25 September, with a final draft of the SI and Explanatory Memorandum shared on 30 September. Therefore that process of engagement has gone on for some time.

I was asked—although this is slightly wide of the statutory instrument—about the current state of negotiations. Intensive negotiations with the EU are ongoing this week. They have resumed in person, and intensive negotiations are taking place in person in London as well as virtually via Webex. The teams are continuing to work very hard and are committed to meeting on a daily basis.

The familiar difficult issues remain. Although there has been some progress across many areas, wide divergences remain on fisheries and the level playing field. We will not abandon our core principles to reach a deal. While an agreement is preferable, we are prepared to leave on Australia-style terms if we cannot find suitable compromises. Either way, as the Prime Minister has made clear, people and businesses must prepare for the changes coming on 31 December, most of which will happen whether there is a deal or not. Obviously, this SI is part of the preparations for the transition.

I was asked about recourse to the courts in the event of any disagreements in relation to EU law and who is arbiter. At the end of the transition period, it is true that there may be a number of cases related to infringements that have not yet been resolved. Infringements arising during the transition period may be brought before the CJEU for up to four years following the end of the transition period.

I was asked whether we would return in future to repeal further legislation under the EU withdrawal legislation. It is an optimistic statement to have to make, and I shall be guarded in making it. I simply say to your Lordships and advise that we are confident, currently, that all critical legislation will be in force by the end of the transition period, ensuring that the statute book is functional.

A couple of other points were made by my noble friend Lady McIntosh of Pickering. I believe that I picked up most of her points; if not, we will look and see whether we can make good. Governments always like to try to make good, hence this statutory instrument before your Lordships.

I shall reply outside on the Lugano framework, as I have undertaken. I am not going to follow further down the line of political remarks. It is true that the Government, as the noble Lord, Lord Thomas of Gresford, said, do not care for the idea of a lasting role for the European Court of Justice, which was confirmed by the British people in both the referendum and the election. Here we are dealing with important, practical and technical legislation, and I am grateful for all the extreme interest in the matter and will endeavour to ensure that any unanswered questions are answered.

With that, I hope that this instrument can be approved so that we can ensure that the statute book works coherently and effectively following the end of the transition period.

Motion agreed.