European Union (Withdrawal) Bill

Mary Creagh Excerpts

Committee: 7th sitting: House of Commons
Wednesday 13th December 2017 Commons Chamber

[Kevin Hollinrake]

I hope that the Minister’s intervention will satisfy some of my colleagues.

Let me end by saying that I will be supporting the Government this evening. In my view, it is time for us to grit our teeth and simply get on with it.

[Mary Creagh (Wakefield) (Lab)]

I rise to speak about my amendments 293, 294 and 295, which deal with the issue of who decides exit day, but rather than making the speech that I originally prepared, I will keep my remarks brief and broad.

The Prime Minister’s decision to set the exit date and to write it into law is another panic move, and it puts her into a self-tying straitjacket. It is a sop to the hard Brexiteers, and it creates a rod for the negotiators’ backs. It weakens, rather than strengthens, the UK’s position in the crucial nine months that are left for us to negotiate a good deal. Eighteen months after the referendum, we have seen the bluff and bluster on the withdrawal agreement. The Foreign Secretary has gone from telling our European partners to go whistle to being little Tommy Tucker singing for his supper to the tune of £40 billion. We have seen a tug of war take place on EU citizens’ rights, and a deal on no hard border with Ireland taking place in frantic late-night phone calls—a deal that the Brexit Secretary later undermined by calling it a mere “statement of intent”, which has caused all sorts of problems.

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[Mr Leslie]

I hope that countries do, and we will need them to, otherwise we will literally be planting carrots in our back gardens. If we do not have trade deals with the rest of the world, we will have to produce more domestically, rather than having the living standards we have previously enjoyed. I am a very pro-trade Member of Parliament, and the right hon. Gentleman should know where I stand on many of these questions. That is why I am asking what the consequences will be not just if we move away from the trade arrangements we have—the finest, frictionless free trade agreement of anywhere in the world that we have right now with the single market and the customs union—but if we then rip up the free trade agreements with non-EU countries that we have enjoyed by virtue of our EU membership. That is another 12% of our exports. Some 50% of our exports are with the EU through our existing trade arrangements, and then there is another 12%—actually, there is another 14% because there are other territories of those non-EU countries as well. That is a big chunk of our trade. I am very concerned about how effectively we can carry out the grandfathering of those FTAs with the rest of the EU.

We must also bear in mind that there are 164 members of the WTO, and they have rights of veto and objection on many occasions. In fact, we recently tried to lodge a suggestion on dividing tariff-rate quotas. This is getting technical, but that is basically dividing up the EU’s share of low or zero-tariff allowances when countries such as New Zealand or Australia try to import lamb. Amazingly, Australia, New Zealand and the United States of America have lodged an objection to the British divvy-up of those tariff-rate quotas. Of course, apparently America should have been knocking on our door, as we were at the front of the queue, supposedly, but it still lodged an objection to our very first relationship with the WTO.

[Mary Creagh]

My hon. Friend rightly raises the issue of these countries objecting to any changes to quota, because they will first and foremost seek to protect their own economies, not our economy. In the event that we get a percentage of the EU quota but for whatever reason—customs barriers; non-tariff barriers; the withdrawal of purchasing power—that quota of goods cannot be sold into the UK, those countries’ flexibility to then sell those goods to the EU is lost. That is why they are digging their heels in so early on this issue.

[Mr Leslie]

That is a real worry. This will not get media attention or airtime, but it is a big chunk of our economic footprint. It is not just a trade issue with the EU; it is a trade issue in respect of all the free trade agreements with the rest of the world.

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[The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)]

It has been a pleasure to listen to this wide-ranging debate and to hear some of the speeches, not all of which seemed to be specifically about clause 8. I compliment my opposite number, the hon. Member for Greenwich and Woolwich (Matthew Pennycook), who very accurately described the clause.

[Mary Creagh]

I do have a speech on clause 8 and I would like to raise some specific points, but I am slightly concerned that the Minister might now be about to speak for 15 minutes, in the tradition that he started yesterday, and I am worried that he will not be able to respond to my specific points.

[Mr Walker]

I am very happy to do my best endeavours to ensure that the hon. Lady does get five minutes to make her speech; she often has interesting points to bring to these debates. Let me discuss briefly, therefore, what clause 8 is for.

As we leave the EU, it is essential that the Government can ensure that we do not breach any of the UK’s international obligations. These international obligations stretch from our promises to other nations, some of which were mentioned by the hon. Member for Nottingham East (Mr Leslie), to those we have undertaken as a sovereign and responsible participant in international organisations such as the Council of Europe and global ones such as the WTO. This need to prevent breaches of our international obligations is the reasoning behind the clause.

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[Mr Walker]

I am happy to give that confirmation. As I said to the House of Lords Constitution Committee earlier today, no one has any intention to amend the Good Friday agreement.

[Mary Creagh]

By regulation.

[Mr Walker]

At all—by regulation or in any other way.

I will turn briefly to the amendments and respond to new clause 20 in the name of the hon. Member for Nottingham East. My Department is leading cross-Government work to assess and act on the international agreements for which, as a result of the UK’s withdrawal from the EU, arrangements will need to be made to ensure continuity for businesses and individuals. Any that require implementing legislation or parliamentary scrutiny before ratification will go through the appropriate, well-established procedures. We are working with our international partners to identify the full range of our agreements that might be impacted by our exit from the EU, and we will be taking their views into account. It would not be appropriate at this stage to publish the type of assessment proposed in new clause 20. Doing so would prejudice the outcome of these discussions and how any action would be put into practice.

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[Mr Walker]

We will be coming forward with more information on this front in due course. However, a lot of the hon. Gentleman’s speech was specifically about trade issues, and we have a Trade Bill that deals specifically with those issues. If I might gently say, a lot of what the hon. Gentleman and the hon. Member for Swansea West (Geraint Davies) talked about related to the content of the Trade Bill rather than this Bill.

We do recognise the need to promote stability for businesses and individuals, and we will aim to transition agreements as seamlessly as possible. I listened carefully to the hon. Member for Swansea West—I am afraid he is no longer in his place—and I would like to reassure him that this clause has nothing to do with future trade agreements. It is purely to do with our existing international commitments and how we make sure we continue to meet them in the context of leaving the EU.

Clause 8 is a very specific power, which will be available only where a breach of our current international obligations arises from the UK’s withdrawal from the European Union. It ensures that we will be able to continue to honour international obligations, which might otherwise be affected by our withdrawal, and it is key to ensuring that we can take our place on the global stage as a fully independent nation. On that basis, I hope that the hon. Members for Nottingham East and for Swansea West will consider not pressing their amendments.

I want to address amendment 345 in the name of the Leader of the Opposition. It is well intentioned but unnecessary. The power in clause 8 has a narrow and specific purpose, and can be used where our international obligations might be breached as a result of leaving the EU. World Health Organisation guidelines are not international obligations; they are used to inform air quality standards in international and EU legislation, but they do not, of themselves, form an obligation to be complied with.

The UK has a strong track record on protecting our environment, and in leaving the EU, we will safeguard and improve on that. The whole purpose of this clause is to ensure that we leave the EU with maximum certainty, continuity and control, and that, as far as possible, the same rules, laws and international obligations apply on the day after exit as on the day before.

Of course, some of the existing mechanisms that allow scrutiny of environmental targets and standards by Governments will not be carried over into our law, and that is why the Secretary of State for Environment, Food and Rural Affairs announced on 12 November our intention to consult on a new, independent statutory body to advise and challenge Government, and potentially other bodies—

[Mary Creagh]

rose—

[Mr Walker]

I am going to give the hon. Lady a chance to speak, so I hope she will wait.

That body will also potentially advise and challenge other bodies on environmental legislation, stepping in when needed to hold them to account and to enforce standards. The Government will consult on the specific scope and powers of that body early next year.

We have a number of amendments—from the hon. Member for Bristol East (Kerry McCarthy), the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) and the hon. Member for Wakefield, whom I will do my best to give a chance to speak—that seek to place further restrictions on the use of the clause 8 power, beyond those already in the clause. These amendments give me another opportunity to restate our firm commitment to ensuring that environmental protections and the rights of individuals—particularly EU citizens resident in the UK—are maintained as we bring EU law on to the UK statute book. This commitment will be reflected in the use of this clause to ensure that, from day one of withdrawal from the EU, the UK is able to comply with its international obligations.

As we stressed during yesterday’s debate on clause 7, the defence and security of the realm is always the first duty of Government, and the Government are absolutely committed to national security and securing the right future arrangements for security with the EU. I would like to take the opportunity to reassure the Committee that we cannot see that anything that damages our national security would be an appropriate way to ensure continued compliance with international obligations. The same would be true of any change to equalities legislation.

All these amendments are well intentioned, but we have been clear in previous debates that we will preserve rights through this Bill, and not reduce them. In those earlier debates, we also set out that, by giving no definition of what, for example, an environmental protection is, or how one might judge that such a protection was being weakened, amendments along these lines risk unnecessary litigation, undermining the certainty that this Bill aims to create.

In the specific context of clause 8, which is about upholding our international obligations, it is very difficult to see how that could do anything other than require us to preserve rights and protections. Parliament has already approved the UK being party to a number of international conventions and international organisations, such as the World Trade Organisation. We are committed to these international relationships. A key part of that is ensuring that we fully comply with our international obligations. Leaving the customs union and the single market may alter the way in which the UK complies with some of these obligations, specifically with regard to the treatment of WTO most favoured nation status.

Amendment 292 in the name of the hon. Member for Wakefield—I know that she wants to speak to it—does not acknowledge these changes in respect of taxation, or the fact that there will not always be a clear choice about how to comply with such obligations in future. Clause 8 gives Ministers the flexibility to make those changes. Of course, however, we will listen to what she has to say. I understand the honourable intentions behind these amendments, but we believe that this clause is well drafted to continue to meet our international obligations.

The UK is a nation whose word is its bond. This Government introduced the European Union (Withdrawal) Bill to ensure a smooth and orderly exit from the EU. Our desire to leave the EU in this way applies both to the actions we take domestically and to our actions in relation to international partners. Clause 8 is key to delivering that, and I commend it to the Committee.

[Mary Creagh]

I thank the Minister for rushing through his speech so that I get the chance to have my five minutes to talk about amendment 292.

Clause 8 allows Ministers to make any regulations to prevent or remedy any breach in our international obligations as we leave the EU, but it also contains a Henry VIII power allowing for those regulations to do anything that an Act of Parliament can do. That includes amending or repealing any Act of Parliament ever passed. It is the most extraordinary and unusual power. I was going to raise the Northern Ireland Act 1998, so I am grateful to the hon. Member for North Down (Lady Hermon) for getting the Minister on the record on that.

The Government have been very scant on the details about the sorts of international obligations that may be affected. They have also been unable to say—I was listening carefully to the Minister—why regulations under clause 8 can impose or increase taxation. We do not want to end up in a situation where the Government can raise tax-like charges by statutory instrument. That gives away the supremacy of this place on taxation. The “appropriateness” test is too broad, and it undermines the supremacy of Parliament. We cannot have taxation by the back door.

Crucially, I did not hear the Minister say anything about tertiary legislation. We have focused a lot on SIs—the secondary stuff. Tertiary legislation enables a new public body that needs to be set up, such as a chemicals body, to charge fees. This may not be controversial at first, but there may come a time when such bodies want to increase the fees, as happened when the Ministry of Justice wanted to increase probate fees by, I think, 1,500%. Why is there a double standard in clause 8 as regards secondary and tertiary legislation? We want tertiary legislation to be given the same parliamentary control and the same time limits as secondary legislation. My amendment 292 seeks to restore the supremacy of the House on financial matters.

I want briefly to deal with the environmental regulation that the Minister talked about. The Government currently have a “one in, three out” rule. Many of our environmental regulations come from international mixed agreements signed and ratified, as he said, by the UK and the EU; some are bilateral and some are multilateral. The Environmental Audit Committee has been looking at our progress in reducing fluorinated gases. These are very powerful greenhouse gases with a global warming potential 14,000 times more harmful than carbon dioxide. They are in commercial refrigeration systems, in our car air-conditioning systems, and in 70% of the 60 million asthma inhalers that we use in this country every year. Targets for reducing those gases are set and monitored by the European Union, but we are also a signatory to the UN framework, so it is a mixed agreement. We have just ratified the Kigali amendment to reduce F-gases by 85% by 2036. That agreement is monitored by the EU, so the Bill will convert the regulation into UK law and we will need new regulations.

The explanatory memorandum states that the new regulations may be subject to the Government’s “one in, three out” rule. We cannot have the Government making hundreds, if not thousands, of new regulations that get caught under that absurd administrative rule, so I want the Minister to assure the House that it will be scrapped. I have written about that as the Committee Chair, and Lord Henley has said that there is no clarity about it and no decision has been made. That has to change.

[Mr Leslie]

This is an incredibly important series of discussions. We need more information on the 759 international treaties that may fall on exit day, and I am glad that the Minister indicated that more information would be forthcoming. I want to vote for new clause 22 on the European economic area and the single market, so I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 22

EEA Agreement

“(1) No Minister may, under this Act, notify the withdrawal of the United Kingdom from the EEA Agreement, whether under Article 127 of that Agreement or otherwise.

(2) Regulations under this Act may not make any provision that would constitute a breach of the United Kingdom’s obligations under the EEA Agreement.

(3) Regulations under this Act may not amend or repeal subsection (1) or (2).”—(Heidi Alexander.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.