Leaving the EU: Legal Services

Lucy Frazer Excerpts

Wednesday 28th March 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Justice (Lucy Frazer)]

It is a pleasure to serve under your chairmanship, Mr Davies. It is also a pleasure to hear the debate brought about by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) and the contributions made by the other members of the Justice Committee. That Committee is doing a huge amount of work to ensure that the issues that matter in our justice system are brought to the forefront and to Ministers to ensure that we have the best possible justice system going forward.

Today, as always, my hon. Friend highlighted important issues that affect us in relation to Brexit. Like him, I acknowledge the important work done by our legal services sector. By reference to points similar to his, there are four key points. The first is jobs, and the legal services sector is the source of many jobs. As he rightly mentioned, it employs well over 300,000 people.

Secondly, the sector contributes significantly to our economy: £24 billion every year. As my hon. Friend highlighted, that money is brought in by not just the legal services sector but its interdependency and relationship with the financial services sector. He mentioned TheCityUK, whose CEO, Miles Celic, highlighted that very point. He said:

“The UK-based legal services sector forms an integral and crucial part of the wider financial and related professional services ecosystem which makes the UK a truly globally-leading international financial centre.”

The legal services sector does not only those things but so much more. It supports people when they are most vulnerable. Many lawyers give up their time to support others for free through the Bar Pro Bono Unit and LawWorks, and I was pleased to see the launch in 2014 of the UK collaborative plan for pro bono, with more than 40 firms committing 325,000 hours a year to support the most vulnerable.

Our sector is so successful because we have outstanding professionals. We have a well-established system of law and a first-class judiciary, whose expertise and impartiality is recognised throughout the world. For those reasons, my hon. Friend is right to say that we need to protect this sector post Brexit, and we are doing that in a number of ways.

My hon. Friends the Members for Henley (John Howell), for Cheltenham (Alex Chalk), and for Bromley and Chislehurst referred to the importance of mutual recognition and the enforcement of judgments. I hope that in our withdrawal agreement we will soon reach an agreement on the protection of and mutual recognition of judgments, and on separation for cases that are pending and currently before the courts.

[Alex Chalk]

I am encouraged to hear that. Some of the evidence presented to the inquiry stressed that if we get such an agreement right, there is a great opportunity for a springboard, particularly in east Asia, where there is a lot of work that British lawyers can seek to win. However, that will require that sound foundation of mutual recognition of judgments, and mutual enforceability.

[Lucy Frazer]

I am grateful to my hon. Friend, and it is important to give certainty to the legal services sector, so that they can advise their clients accordingly. My point was about the withdrawal agreement and what will happen to cases that are already pending before the court. The second stage of our negotiation was about implementation, and we have given businesses legal certainty by ensuring that our current arrangements will continue to apply during the implementation period. We are starting to negotiate and come to an arrangement on what will happen in future after we leave the EU.

My hon. Friend the Member for Cheltenham was right when he mentioned the gold standard and the Brussels regulation, and my hon. Friend the Member for Henley was correct to identify the importance of the Hague convention. Both those things are important, and we hope to secure the Hague convention as a minimum. It is right to ensure that there will be no gap before we rejoin that convention, and we are pressing to secure that. Our ambition and aim is to negotiate as hard as possible and ensure arrangements and protections in future that are similar to those we currently have.

My hon. Friend the Member for Bromley and Chislehurst raised the important question of legal services, the right of citizens to practise here and abroad, and the mutual recognition of qualifications. Again, on separation, as part of the withdrawal agreement we have agreed that any lawyers within the scope of the citizens’ rights agreement who have become part of the host profession in the member state should remain recognised and able to practise. Last week we agreed the terms of the implementation period, in which we will have the same rules as now. Therefore, rules on market access will continue, including on the provision of services and establishments for lawyers. The Government are keen to ensure a good deal for the legal services sector in future.

[Robert Neill]

I am glad to hear the Minister say that, and I am sure she will recognise that for the legal services sector, a CETA-type deal simply is no good. For legal services, a CETA-type deal is no deal. When we seek an ambitious deal, we must go beyond that which has been posited by some as a solution, because CETA would be just as bad as the cliff edge, which I think the Minister and I, and the Government, do not wish for under any circumstances.

[Lucy Frazer]

My hon. Friend makes an important point, but we can see how the Prime Minister is approaching this. In her Mansion House speech she specifically said that it makes sense for us to continue to recognise qualifications in future, and she identified the importance of civil and judicial co-operation. She specifically identified a few areas where the UK and EU economies are linked, and one of those was law.

As my hon. Friend rightly identified, our opportunity to expand our legal services extends not just to the EU, and we also have the opportunity to develop free trade agreements with third countries, which may cover legal services. He was right, however, to say that protectionism already exists in other countries, and although few FTAs currently cover legal services, we hope and are ambitious to change that in the future.

It is not only in the Brexit discussions that we continue to support our legal profession, and considering LawTech, technology, and innovation in legal services is key to ensuring that the United Kingdom retains its world-leading status. That is why the Government, building on success in the FinTech sector, are ensuring that new and innovative legal technologies are embraced and supported. We are fully supportive of LawTech innovation, which is now gathering pace. The number of LawTech start-ups in the UK is increasing each year, from three in 2010, to more than 60 in 2016. We are committed to ensuring that the UK becomes a world leader in smart contracts, and we are keen to bring together work that is being done to make those contracts a reality.

We are doing other significant work beyond the UK to support and promote legal services abroad. We are joining up with the judiciary and legal services sector, helping it to gain footholds in new markets, and proactively spreading the message about why English law, and the legal offering in the UK, is so strong. My hon. Friend rightly referred to the GREAT campaign, and the “Legal Services are GREAT” campaign was launched by Lord Keen in Singapore last year. The campaign targets stronger links with emerging and established markets across the world, and it aims to cement the UK’s reputation as the world’s pre-eminent legal centre. It is showcasing the very best of what the UK’s legal services sector has to offer, bringing business to the UK and our legal firms, chambers and courts.

We are also working with partners to target the countries that matter to the UK. In April we will deliver an English law summit in Kazakhstan, alongside the Law Society and the Bar Council in England and Wales. In May, our campaign will feature in the UK pavilion of the Silk Road Expo in Xi’an, China. We are working bilaterally with our key allies on areas of mutual interest. Legal services feature prominently in the regular programme of bilateral ministerial meetings that we organise, including last year with Ministers from Singapore, India, Australia and China.

My hon. Friend made a number of important points, and we must recognise the importance of talent, and the mutual recognition of qualifications and judgments. He rightly said that there is a wealth of knowledge in the legal services sector, and the Department is using that. I greatly welcome the expertise that that sector brings to ensuring not just a good justice system, but the right deal on Brexit in the future. My hon. Friend also mentioned intergovernmental Department contributions, and the importance of other Departments appreciating the significance of the legal sector. I assure him that I am already talking to my counterparts in the Department for Exiting the European Union and the Treasury to identify the importance of the legal services sector. Yesterday I gave evidence with a legally qualified Minister, the Under-Secretary of State for Exiting the European Union (Suella Fernandes), and having heard her give that evidence, I am confident that she is very much aware of the importance of our legal sector.

In conclusion, our overall message is simple: the UK is, and will continue to be, one of the pre-eminent legal centres in the world. We will continue to be a leading player, and I am determined to ensure that English law remains the law of choice, and that the UK continues to be the jurisdiction of choice.

[Robert Neill]

I welcome the Minister’s positive remarks. On work within Government, can she assure us that maximum effort will be made to join up the work of the legal services working group, which exists within the Ministry of Justice, and the Brexit Law Committee, which reports to the Department for Business, Energy and Industrial Strategy? The profession is concerned that there should be no disjuncture between the two. It sounds as if the Minister and the Under-Secretary of State for Exiting the European Union have been talking, but it is important that that happens consistently at official and professional level.

[Lucy Frazer]

That is a good point that I am happy to take forward. It has been helpful for me to air these points today, and once again I congratulate my hon. Friend on securing this important debate, and indeed all hon. Members on their contributions today.

Question put and agreed to.