European Union (Future Relationship) Act 2020 (References to the Trade and Cooperation Agreement) Regulations 2021

Lord True Excerpts

Wednesday 21st July 2021 Grand Committee

Moved by

[Lord True]

That the Grand Committee do consider the European Union (Future Relationship) Act 2020 (References to the Trade and Cooperation Agreement) Regulations 2021.

Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee

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

My Lords, I beg to move that the Grand Committee do consider the draft European Union (Future Relationship) Act 2020 (References to the Trade and Cooperation Agreement) Regulations 2021, which were laid before the House on 16 June. Of course, I am grateful for the opportunity to discuss the regulations presented before the House, but I apologise again as a Minister that I cannot be present in person as I am currently isolating.

The purpose of this instrument is technical; it does not introduce any new policy. Rather, the main purpose is to update references made in the European Union (Future Relationship) Act so that they match the legally revised trade and co-operation agreement, helping to ensure a clear and coherent statute book.

The trade and co-operation agreement, along with the security of information agreement, and the nuclear co-operation agreement, was provisionally applied, as noble Lords will remember, from 2300 on 31 December 2020, in time for the end of the transition period and pending ratification.

In the UK, it was necessary to pass the future relationship Act, which implemented the agreements in domestic law before provisional application was possible. As I am sure noble Lords will recall, it received Royal Assent on 31 December last year. It was our expectation that the European Union would ratify in turn, in line with its own procedures, the treaty ratification in the European Parliament and the Council. The original deadline for provisional application was 28 February. The Government subsequently agreed to the EU’s request to extend the original period of provisional application to 30 April 2021 to give it more time to complete its processes. We are pleased that the European Union completed these processes before the end of April, and the agreements therefore entered into force on 1 May.

Due to the short period of time available between concluding negotiations and the end of the transition period, it was not possible to complete the necessary legal revision process before the agreements were provisionally applied on 31 December. Instead, the agreements have undergone a final process of legal revision since provisional application. The legal revision process provided for by Article FINPROV.9, now Article 780, of the trade and co-operation agreement resulted in typographical and other errors in the agreement being corrected, and the articles being renumbered from Article 1 to Article 783. I underline for your Lordships, however, that the substance and policy content of the agreement has not changed.

As a consequence of this revision to the trade and co-operation agreement, some of the corresponding numbering and references in the European Union (Future Relationship) Act must be updated, which is why this statutory instrument has been drafted and laid. If the instrument is not made, some references in the European Union (Future Relationship) Act, including numbering and annexes, will not match what is contained in the legally revised agreement. It could be the cause of undue confusion for businesses and citizens, potentially making it difficult for them to ascertain what their legal status is and what their legal obligations are. It is therefore crucial that we provide clarity so that businesses and citizens can pursue the opportunities of our agreement with confidence.

This statutory instrument was laid by my noble friend Lord Frost, following the affirmative procedure in exercise of the powers provided for in the future relationship Act. These powers allow Ministers to make amendments that they consider appropriate in pursuit of coherence and clarity following the legal revision process envisaged by the trade and co-operation agreement. The main changes to the European Union (Future Relationship) Act as a result of this instrument are the renumbering of the articles and the correction of cross-references to the TCA in the Act. For example in Section 8(1)(a) of the Act, Article LAW.PRUM.15 will now become Article 537 to reflect the legally revised version of the trade and co-operation agreement. Similarly, in Section 14(1)(a) of the Act, Article TBT.9 now becomes Article 96. I can assure noble Lords that I do not intend to go through all the examples, but they are set out in the instrument.

I can confirm that there was engagement with the devolved Administrations prior to the laying of this instrument, and they are content. I take this opportunity to note my gratitude to the devolved Administrations for their constructive collaboration on this matter.

I hope therefore that noble Lords can agree with me that these draft regulations perform a simple but valuable role in helping to ensure certainty and clarity in the UK’s statute book as we take full advantage of the opportunities available to us in the new era. I beg to move.

--- Later in debate ---

[Lord True (Con) [V]]

My Lords, the computer is trying to remove the answer to one of your Lordships’ questions—if it does, I shall have to reply in writing.

I am very grateful to all noble Lords for their contributions. As I set out, the purpose of the instrument is to help ensure that the statute book works coherently and effectually following the legal revision of the trade and co-operation agreement. I will not get drawn into a detailed debate about historical periods; indeed, it being a hot afternoon—and being I think in a minority on this Committee in the views I took on the events of 2016 to 2019—I excised from my brief all political points.

I will not go into them, except that I must respond to my noble friend Lady Wheatcroft’s comments on my noble friend Lord Frost. I repudiate those comments and disagree with her that the country would be better served by another person engaging in negotiations at this time. My noble friend Lord Frost, as a civil servant and as a Minister, has been and continues to be an outstanding servant of his country. I also submit that anyone who was present in the House today or who followed its proceedings could not but agree with the measured, restrained and realistic tone in which he presented the Government’s proposals to the House. They were everything one would expect of a diplomat and Minister.

The protocol is not strictly germane to these arguments, but my noble friend has laid out proposals before the House which we wish to negotiate and consider in good faith with the European Union. It is idle to deny that the protocol has caused problems in Northern Ireland; it has done so—and it behoves all of us in a spirit of comradeship, amity and diplomatic endeavour together with responsible institutions, such as our partners in the EU, the Government of the Republic of Ireland and ourselves, to seek to solve the problems that we all agree have arisen to help the good people of Northern Ireland. We wish for the best possible relations with the European Union. We have long enjoyed those, and I pray for the day, if they are not as satisfactory as we would wish—although I do not say that they are not satisfactory—when good relations between us should ever thrive.

A broader question was raised about exports and imports. That is an important question, and the Government are monitoring closely, as I can assure my noble friend Lady McIntosh, the movements and changes in trade, in exports and imports. It is obviously particularly complex at the moment because of the complicating factors of the Covid emergency, which have distorted so many things in international life over the last few months. However, I assure my noble friend that we have monitored those things extremely closely and will continue to do so.

I was asked by the noble Baroness, Lady Wheatcroft, about CE markings. My computer has not been able to provide me with the answer, but I absolutely undertake to the noble Baroness to get that answer to her and copy that to other members of your Lordships’ committee.

I was asked about touring musicians—another broader issue. I dealt with this matter when responding on the European Union in your Lordships’ House. It is a matter of concern and one which the Government have taken and did take very seriously. As the noble Lord will know, we made proposals to the European Union that were not acceptable at the time. At the first UK-EU partnership council on 9 June, the UK raised the issues faced by touring performers and noted work under way with member states, as he says, on trying to ease or clarify the barriers presented by visa and work permit requirements. I promise him that we will continue to discuss these issues with all member states to find solutions to this work for our great creative industries. It is a matter of concern, and I assure him that that is the case.

On the question of affirmatives, it is always a bad thing for a Minister to give an absolute categorical guarantee if he is not entirely sure of his ground. What I am sure of is that the Government believe that decisions are made stronger through scrutiny and debate, and in that respect I respond positively to what the noble Baroness, Lady Hayter, said. We are committed to facilitating scrutiny wherever possible.

In this case, the FR Act requires the Government to use the affirmative procedure. Because the power which the Government are using, as today, to make the SI is inherent in that Act and because the SI is being made after IP completion date and amends primary legislation, it is necessary for such a procedure to be affirmative. In reply to the noble Lord, Lord Wallace of Saltaire, my assumption, if not my undertaking, is that because of that legal position, if any further regulations of this kind were to be brought forward—our current expectation is that we are not aware of further, similar statutory instruments in the pipeline—my expectation, as well as that of Parliament, is that they would come forward as affirmatives under the Act.

I was asked whether there had been any complaints or court action as a result of the numbering difficulties—the noble Lord, Lord Wigley, raised that. I am not aware of any. Obviously, the Act made provision to enable this kind of renumbering to happen. If I am wrong on that score, I will correct the issue and let him and other noble Lords know, but I am not aware of such proposals in the pipeline.

I accept the general construct of the remarks from the noble Baroness, Lady Hayter. Parliamentary scrutiny is and will be important going forward in our relations with the EU. I think it is right to place on the record—this is not only my personal view—that the Government are very appreciative of input from the scrutiny committees in both Houses as we consider what shape scrutiny should take going forward. I am informed that our officials are having fruitful discussions about this with committee officials in both Houses, and I am sure that that is the case. Obviously, arrangements for long-term scrutiny must be proportionate and focused on areas where the United Kingdom has direct legal obligations under the new relationship. However, the Government will facilitate transparencies of the withdrawal agreement and TCA governance structures to the extent that we are able.

With regard to consultation with the devolved Administrations, I referred to that in my opening remarks. The DAs were engaged on this. The Government wish to have a constructive relationship, which is why the Prime Minister called the Covid summit after the elections in the devolved Administrations—my right honourable friend the Chancellor of the Duchy of Lancaster is a conspicuous example of this; noble Lords will have heard him before your Lordships’ committee yesterday. In this particular case, the Northern Ireland Executive were indeed involved and confirmed that they were content with the SI. Because of its technical content their formal consent was not required, but they were certainly fully involved.

I apologise for not being able to give a detailed answer on the CE marks to my noble friend Lady Wheatcroft. I hope I have not missed anything out. I passed over a few references to Mr Cummings—it is always tempting to mention him to me. As I say, it is a rather hot afternoon and I decline to be drawn on that subject. I hope this has been at least some kind of response to your Lordships. I am grateful for all the points raised, and we will reply to those that I mentioned which we have not replied to. I thank all noble Lords for their contributions and appreciate all those who have come to improve our discussion today. I commend the regulations to the Committee.

Motion agreed.