(4 years, 2 months ago)
Lords ChamberMy Lords, I do not believe that this Government have a jingoistic attitude or one of superiority towards our French partners or any others. My belief, and that of most people who know both nations and the member states on either end of the main transport routes, is that no one would see an interest in unnecessary disruption. What is before your Lordships is a reasonable worst-case scenario. It should not be taken as a prediction. I hope that over the next few months, people reflecting on these matters ensure that we come nowhere near such a scenario.
My Lords, the Minister said that this was a reasonable worst case. But, given the statements by the Freight Transport Association and the Road Haulage Association, neither of which believe that this system will be in place by January, is it not in fact closer to the most likely outcome, and do the Government not need to find a contingency arrangement that avoids the worst of this scenario?
No, my Lords. We believe that the systems we are putting in place provide the best guarantee that we will avoid the worst case. I cannot promise that there will be no friction, but I do not accept the characterisation of the recent meetings between the Government and the Road Haulage Association. I believe that those meetings have been constructive. As I said, we have provided more than £80 million in funding to support customs intermediaries, and the measures that I have spoken of today will assist more road hauliers to become ready. The Government are not criticising anybody; they seek partnership, and I do not believe that throwing stones on either side of this constructive discussion helps.
(4 years, 3 months ago)
Lords ChamberMy Lords, I am not quite as adept as my noble friend, but I try never to bring too much despondency to the House. The Government’s position is that we still very much hope that we will get a fruitful and excellent agreement, but my noble friend is right to say that major difficulties remain and that the EU’s insistence on progress on state aid and fisheries is an obstacle to making progress overall.
My Lords, nearly three years ago I chaired an inquiry into non-financial services. As far as I can see, and from what the Minister says, virtually none of the concerns of those sectors has yet resulted in an actual agreement, even in draft. It would of course be helpful if the Minister could undertake to get his department to reply to each of the recommendations in that report but, for today, perhaps he could respond on just two sectors. On the creative industries—music, film, broadcasting and theatre in particular—what progress has been made for reciprocal provisions on intellectual property, free movement, particularly mode 4, and even such basic things as transportation of musical instruments and theatrical scenery, for example? On transport, specifically aviation—I declare my vice-presidency of BALPA in the first sector—and road haulage, aside from any short-term contingency provisions—
Progress has to be made on obtaining long-term reciprocal EU-UK arrangements for those sectors.
Before the Minister replies, I remind Members that we have now gone for four and a half minutes and have had only two questions. If people could keep their questions short, it would be much appreciated by the House.
(4 years, 6 months ago)
Lords ChamberMy Lords, the noble and gallant Lord makes an important point. In responding to threats since 2016, we have drawn lessons about the involvement of the Armed Forces, as well as volunteers. I pay tribute to the extraordinary role of the Armed Forces in the current crisis and agree with much of what he said.
My Lords, given that the outbreak of a pandemic has been top of the risk register since 2009, do we need not just a list of the mitigation required but the means to deliver that mitigation? We know that there were no standby contracts for the production of PPE or stockpiles of it. We also know that laboratories in the public, private and university sector had not been contacted to establish potential testing facilities. This would apply whatever the nature of the disease. From here on, will those contracts be put in place for any future pandemic?
(4 years, 9 months ago)
Lords ChamberMy Lords, I thank the noble Earl, Lord Kinnoull, and his committee for producing this report. It is very timely and clear. I will be supporting my noble friend Lady Hayter’s amendment and I thank her for tabling it. I will say something towards the end of my remarks about the whole issue of accountability.
I also thank the noble Lord, Lord Kerr, even though he has largely pre-empted some of my more important points. Like him—and the committee, rather more delicately—I regret that there has been a departure from the spirit of the political declaration. There has been a bit of a departure by the EU, one has to say, but a very substantial departure by the British Government from a political declaration that was, after all, signed by this Prime Minister. That is serious enough but, as the noble Lord, Lord Kerr, has just said, even more serious is the apparent departure from what is already in a signed treaty in relation to Northern Ireland and the protocol in the withdrawal agreement.
My main remarks will be about trade, which is, after all, the most important dimension of our joint relationship, although it is not the only one. I had to look back; it was as long ago as December 2016 when the committee I was then chairing jointly produced for the then EU Committee a document entitled Brexit: The Options for Trade. I had another look at it over the weekend. We were very prescient and far-sighted in the options we looked for. We accepted that Britain would be outside the EU and that we would leave in formal terms the customs union and the single market. I remember saying several times in this House and elsewhere that, in that situation, frictionless trade is a relative term; you have to look at the different implications of the different arrangements.
We looked at a number of arrangements, ranging from membership of the EEA through to trading under WTO rules. It seems to me that all those outcomes might still conceivably be the case. We are no further ahead. In effect, in the latest Council decision, the 441-page treaty which the noble Earl, Lord Kinnoull, has clearly read—he might send me one of his four copies, even if it is in French—the EU clearly goes for the option of something very like an association agreement. In fact, in treaty terms, it will be under Article 217 relating to association agreements.
The British option, as far as one can interpret it, is much closer to the arrangements with Switzerland, as the noble Lord, Lord Kerr, has said. They are looking for a trade agreement but also a whole suite of other agreements. That was an option that we looked at but largely dismissed. It could still be a form of free trade agreement, similar to that agreed with Canada or Japan, or to what the Government used to talk about—Canada-plus-plus-plus. That has been relegated to just one “plus” in recent ministerial announcements, but all those options are still there, as is the bare-bones agreement of limited clauses and effect that was once referred to by David Davis; or it could be on WTO terms, as I say, which is now known as Australia. They are all still available, although the one that we identified at the time as the easiest and least disruptive course to take—namely, to join on EEA terms: the Norway option—although we did not actually advocate it, has been clearly rejected by the Government and, in effect, by the EU. So there are still a lot of potential outcomes between now and the end of December.
It is three and a half years after our report, after two general elections, two Prime Ministers, three Governments and four Secretaries of State. Until very recently, the only continuous presence was that of the noble Lord, Lord Callanan, on the Front Bench opposite—I am pleased to welcome the noble Lord, Lord True, in his stead. There have been many changes in the British political situation since we produced that trade report. However, there has been no serious progress regarding relations on this key issue between ourselves and our largest and closest trading partner.
Do the Government mean what they say about wanting a Swiss-type suite of separate agreements with separate Governments? That has caused many ructions between the EU and Switzerland, and it is a relatively small part of EU trade compared with the EU’s trade with the UK. I am not sure why we need that suite. In the British government documents and the other pronouncements there is, for example, a reference to a bilateral aviation agreement. I hope we have one, otherwise aviation range will fall on 1 January. There was a reference in the timetable for the trade talks—before the virus slowed them down a bit—to talking about a separate aviation safety agreement and a general aviation agreement. I have a Question set down for later in the week about the European Aviation Safety Agency. The situation there, as both the airlines and the aerospace manufacturing industry recognise, is that if we are not careful and do not continue to act very closely with EASA, the airlines will be faced with a situation where their aircraft, their components, and the qualifications of their personnel may be legal at one end of a short European hop but queried at the other end. If we want to diverge, there are consequences. If we do not want to diverge, why do we not say so and reach some sort of association agreement with EASA?
The same applies to many of the other EU agencies, which, during the course of several different withdrawal Bills, I raised in the House. Mrs May, when she was Prime Minister, recognised that there would need to be some separate arrangement on aviation, as she did on chemicals. We had a Question today from the noble Lord, Lord Fox, and the Government were not at all clear on what arrangements would be made for that vital industry. Environmentalists and the industry itself are deeply concerned about the capability of the HSE and air authorities to reproduce the arrangements in the European Chemicals Agency. Indeed, even if we manage to duplicate those arrangements, it is a double administrative cost and charge, and a potential delay for our chemicals-based sector and the industries that use chemicals.
If we are going to have separate agreements on separate areas that are covered by such things as the aviation or chemicals agencies, now we ought to be particularly concerned about the medicines agency, which was of course based here and has already left—and there are many others, for example on food safety. If we are to have a separate agreement on fisheries, the EU will insist that that is reached before we reach a general agreement. Indeed, because of the timing of this, the Government seem to be going along with the view that we can reach a fisheries agreement by June. I think that is unlikely. It is equally unlikely that we will reach a financial services agreement by July. The noble Lord, Lord Kerr, and my noble friend Lord Hain spelled out the ambiguities in meaning of the Northern Ireland protocol and whether we can reach mutual understanding on that in time for this to be all agreed, broadly speaking, by September, and ratified through the European Union and ourselves by December. It is about time for the Government to recognise that, leaving aside the current serious difficulties because of the coronavirus, the timetable they set themselves was never achievable and is certainly not achievable now.
Other issues, such as the level playing field—where we started from the position in Mrs May’s Chequers proposition that we were talking about a common rulebook but ended up with the Government making a virtue of maximum divergence—and state aid, also need to be resolved. There is certainly deep anxiety among our former partners in Europe that there will be heavy state intervention to support competitors against their own industries. Not that long ago, during the election, it was regarded as a very leftist position to look to subsidise British industry—people were worried about Jeremy Corbyn breaching the state aid rules in that regard—but now, with this big-state Toryism, the Government in Brussels and Governments throughout the continent are worried about this Government causing unfair competition. These issues are not easy to resolve and are unlikely to be resolved in the timetable currently announced—but they need to be resolved.
My last point is on accountability to Parliament, which is the main point of my noble friend’s amendment. I understand what the noble Baroness, Lady Noakes, said about the political situation having changed but, like the noble Baroness, Lady Falkner, we are not asking for the exact equivalent of the European Parliament. We are simply asking that both Houses of Parliament are kept informed on the progress of these negotiations and can comment on them.
The strange thing is that, in discussing the potential trade treaty with the United States, the Government have, in effect, given that guarantee, at least to the House of Commons. When we talk about a prospective treaty with the United States, they are prepared to be accountable to Parliament; when we talk about a trade agreement with our largest and closest neighbour, they are not. That needs to be addressed; Parliament needs to assert itself in that process. I support my noble friend’s amendment.
Does the noble Lord agree that there are many routes for Parliament to carry out that scrutiny? One route could be a Joint Committee of both Houses or a dedicated Select Committee—possibly even an extension of the European Union Select Committee. It does not have to be a replication of the European Parliament’s powers but can be something where scrutiny is undertaken adequately.
I thank the noble Baroness. I agree. We need the principle of scrutiny; the form of it we can debate. We can debate the correct structure within our two Houses but, without the principle being conceded by the Government, we are in an anomalous situation in relation to Europe and to what has been promised on this side of the pond in potential trade negotiations with the United States.
(4 years, 9 months ago)
Lords ChamberMy Lords, I congratulate the noble Lord, Lord Bird, on producing this revolutionary and visionary Bill, and I congratulate Welsh colleagues on showing the way.
Reading the Bill as it stands, it does not immediately give the impression of either vision or revolution. It is full of references to new commissioners, joint committees, processes, annual reports and so on. But—and this is the key point—if properly implemented and followed through, it would embed in the mundane processes of government, and to some extent of business, the central principles of sustainability and concern for the well-being of our grandchildren and the generations beyond. That, given what we normally do, is truly revolutionary. All the great revolutionaries, from Jefferson and Robespierre to Stalin and Lenin, saw the point of writing their own ideology into the constitution—though some of them overdid it a bit. This will give us the way to meet the objectives of this Bill, if we take it seriously. It also has the benefit of being subject to parliamentary democracy, and indeed wider democratic participation.
Until recently, most economists have downplayed the problem of future generations on the grounds that economic growth, turbocharged by innovation, would give future generations more resources to sort out their own problems, and that therefore it is an issue of distribution for future generations rather than for us. That no longer holds water. The kind of problems we face now, such as climate change, biodiversity challenges, threats to the cultures of many human societies, resource depletion, overpopulation, inappropriate farming methods and so forth, all mean that future generations will have much bigger problems. Economic growth in and of itself will not give them the means and resources to make those distributional decisions.
I want to make a couple of technocratic points. The first is on the rather modest Part 6 of the Bill, which relates to social value. Those clauses would put into government procurement the need to observe the wide range of cultural and economic effects of social value. Take the example of the buying of food by the public sector: observing social value issues would dramatically change the way in which our food system works. That needs to be taken into account when we come to consider the Agriculture Bill shortly.
My second point does not relate explicitly to the Bill, but was hinted at by the noble Lord, Lord Rees. To summarise, he said that Ely Cathedral was not subject to modern methods of cost-benefit analysis—that indeed is the problem. Almost every decision within government is subject to a net present value calculation based on the discount rate diagnosed and proclaimed by the Treasury in the Green Book. For years, that used to be at 8%, which meant that, 20 years ago, any benefit to anybody in 20 or 30 years’ time was reckoned at pretty much nothing. Now, at 3.5%—which is itself considerably higher than the rates of interest—it reduces £1,000-worth of future benefit in five years’ time to £700. In 20 years’ time, the benefit to future generations, even if we identify it now, would be discounted almost to nothing.
To really make this work, the Government would have to look at this concept and these mechanisms, which are absolutely essential to our appraisal of policies and particular projects. They would need a really thorough going-over, and I hope the Government realise that, if they accept this Bill, this is what they will have to do. I hope the Government do accept it, and that what has been referred to as the Bird Bill turns into the Bird Act, and we put the resources behind it to make it real. I once more congratulate the noble Lord, Lord Bird, on producing today’s Bill.