Draft Freedom of Establishment and Free Movement of Services (EU Exit) Regulations 2019

Debate between Nadhim Zahawi and Bill Esterson

Monday 21st October 2019 General Committees

[Nadhim Zahawi]

I have a lot to cover, but I will happily take the hon. Lady’s intervention later. The Government’s plan on citizens’ rights confirms that EEA and Swiss citizens resident in the UK by exit day would be able to apply to the EU settlement scheme until at least 31 December 2020 to secure their status in a no-deal scenario. The EU settlement scheme is live and performing well. More than 2 million applications have now been received, and the scheme will continue to run in a deal or no-deal scenario. EU citizens resident in the UK by exit day will continue to be able to access benefits and services on exactly the same basis after the UK exits the EU as they do now. I sincerely hope that colleagues will refrain from scaremongering. It is deeply irresponsible for hon. and right hon. Members to do so.

The hon. Member for Sefton Central asked important questions, which I will attempt to address. He asked about the impact assessment for the regulations. An impact assessment has not been prepared because the impact has been approved de minimis in line with the better regulation framework.

[Bill Esterson]

How will you know if you don’t do one?

[Nadhim Zahawi]

Let me make some headway.

The only area in which the directly effective rights of establishment or free movement of services have been identified to have a direct impact on UK businesses is in the case of satellite decoders, where we expect the impact to be minimal. The directly effective rights of establishment and free movement of services impact the immigration regime applied to Swiss and Turkish nationals. Changes to the regimes will be delivered by primary immigration legislation, so let us not conflate those two things.

The hon. Gentleman also asked how we know that the EU will not reciprocate. Why are we doing this now? These rights are no longer reciprocated once we leave the EU. They are directly effective rights that are applicable only to member states. However, this does not preclude us from agreeing an ambitious free trade agreement with the EU.

The hon. Member for Cardiff South and Penarth said that the regulations are necessary to protect the Government’s freedom to regulate in a no-deal scenario and asked what regulations the Government are planning that would contravene or depart from those rights. We anticipate that the immediate practical impact of the regulations on the ability of EU, EEA, EFTA, Swiss or Turkish nationals to establish or carry on business or provide services in the UK will be limited, because UK law is currently expected to be compliant with these rights. Were there to be any legislative changes that depart from these rights—which I think is his point— after we have left the EU, they would be subject to the scrutiny of Parliament in the normal way and so would be considered at the appropriate time.

I want to return to the hon. Member for Sefton Central, who asked how the Government can be sure that there are no other direct impacts. The Government have prepared as thoroughly as possible. I hope he would agree that we have consulted as thoroughly as we can, and that the only exception is the satellite decoders.

Several hon. Members spoke about the submission from the Public Law Project. Allow me to address it. It is important that we get this on the record, because emotions are running high and the atmosphere is febrile in this place. I think I have addressed the issue of the impact assessment. The hon. Member for Sefton Central said that these go beyond the powers conferred on Ministers by the Henry VIII powers in section 8 of the withdrawal Act, a point that pretty much comes from the Public Law Project notes that were circulated today. I will share with the hon. Gentleman the correct position. The powers delegated to Ministers by Parliament via the EU withdrawal Act specifically allow changes to be made to existing Acts of Parliament by secondary legislation, through so-called Henry VIII powers. In its report on Henry VIII and delegated powers, the House of Lords Constitution Committee noted that

“the distinction between Henry VIII and other delegated powers is not in this exceptional context a reliable guide to the constitutional significance of such powers, and should not be taken by Parliament to be such.”

Section 8 powers to prevent, remedy or mitigate deficiencies in the EU law retained under the Act that arise from the UK’s withdrawal from the EU are used here to address deficiencies in retained EU law relating to certain provisions on freedom of establishment and free movement of services in the event that the UK leaves the EU without a deal. Section 8 is used to address any inoperability of such rights and to ensure that UK law continues to function effectively and with legal clarity.

--- Later in debate ---

[Bill Esterson]

I made the point that section 8 of the withdrawal Act is designed to address deficiencies in retained EU law—that is not in question. The problem is that it is not being used for that; it is being used for changes in policy and to affect people’s rights. That goes way beyond the scope, as does addressing WTO deficiencies. That is not what was ever envisaged or stated by the Government when they passed the withdrawal Act.

[Nadhim Zahawi]

The deficiencies in retained directly effective rights concerning freedom of establishment and the free movement of services, including a lack of reciprocity, which there cannot be in this case, arise as a result of the withdrawal of the UK from the EU. That is the whole point. The provisions in the regulations are being made as a direct consequence of the UK’s exit from the EU.

Finally, the hon. Member for Sefton Central mentioned the3million’s campaign on our doing this here through secondary legislation, rather than primary legislation. The regulations do not represent a significant policy change, as he suggests. They simply do not. If colleagues prefer to scaremonger, that is their prerogative, but I do not agree with them. I think it is a mistake to do that. It is a time to behave responsibly. The regulations do not impose any new restrictions on EU, EEA, EFTA, Swiss or Turkish nationals or on EU, EEA, EFTA, Swiss or Turkish-based businesses at the point at which we exit the EU, and we do not expect disapplying these rights to have a direct impact on the ability of EU, EEA, EFTA, Swiss or Turkish nationals to establish or provide services. The hon. Gentleman will know better than I do that successive Governments have implemented EU obligations via both secondary and primary legislation, so I hope he will reconsider his position.

I will end, Mr Hanson, because I want to get you over the road to the hospital to see your granddaughter. I thank Members for their valuable contributions to this debate. I compel them to think twice before they scaremonger. The hon. Member for Glasgow Central should talk to her colleagues in the Scottish Parliament on this.

Oral Answers to Questions

Debate between Nadhim Zahawi and Bill Esterson

Monday 25th June 2018 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

4. If he will make an assessment of the potential merits of the recommendations for his Department in the Family Rights Group report, “Care Crisis Review: Options for Change”, published in June 2018; and what discussions he has had with Cabinet colleagues on that report.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

The sector-led review is an important contribution to the family justice system. Across government we will consider its findings and recommendations carefully. My counterpart in the Ministry of Justice and I are due to meet the Family Rights Group to discuss the report in more detail.

[Bill Esterson]

Now that the Government have admitted that cuts to the national health service were a political choice, not an economic necessity, will they admit the same when it comes to local government, especially children’s social care? Will the Minister read the report from the directors of children’s services, take the action that is needed to end the crisis in children’s social care, and make the priority looking after our most vulnerable children, not tax cuts for the very wealthy?

[Nadhim Zahawi]

There is some great work taking place in children’s social care across the country. Money, of course, is a consideration, but good leadership, and strong and confident teams are making a huge difference. Across government, as has been mentioned, we are spending £1.4 billion on the troubled families programme.

Oral Answers to Questions

Debate between Nadhim Zahawi and Bill Esterson

Monday 19th March 2018 Commons Chamber

[Nadhim Zahawi]

My hon. Friend has been a champion of children in need. The review is absolutely intended to establish best practice. It builds on work that we already do with our partners in practice local authorities, the expansion of which I announced last week.

[Bill Esterson (Sefton Central) (Lab)]

Since 2010, the number of children on the child protection register is up 83%, while the number of children in care is at its highest since 1985. Does the Minister think that the cuts in children’s services since 2010 are the reason for that? If not, to what does he ascribe those terrible outcomes for the most vulnerable children in our society?

[Nadhim Zahawi]

Local authorities have been increasing their investment in children’s services. I visited Hackney, Wigan and Doncaster, and my impression is that the real differentiator is leadership, which is why we are investing £2 million in the Local Government Association to look at leadership and the partners in practice programme.