European Union (Withdrawal) Bill

Philippa Whitford Excerpts

Committee: 4th sitting: House of Commons
Monday 4th December 2017 Commons Chamber

[Paul Masterton]

For the simple reason that there is another JMC meeting on 12 December, and we do not believe it is right to prejudge or prejudice the outcome of those negotiations. There is going to be an agreement, and it is much better to allow such an agreement to be reached and incorporated into the Bill.

Much has been devolved since 1998, but nothing that jeopardises the UK’s single internal market. It would be in the interests of neither consumers nor producers for product safety and consumer protection rules to be different across the nations of the United Kingdom.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Will the hon. Gentleman give way?

[Paul Masterton]

I am going to make some progress.

These rules are now uniform throughout the UK and many, but of course not all, should remain so after Brexit. Amendments 164 and 165 go too far and are dangerous to the Union. Frankly, I am startled that Scottish Labour—only one Scottish Labour MP is here—and Scottish Liberal Democrats are prepared to support these amendments, which could so fatally undermine the integrity of our Union. The Scottish Conservatives will not support them. However, I want to make it clear that my vote with the Government should not and must not be taken as an acceptance of clause 11 as it stands.

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[Dr Whitford]

Does the hon. Gentleman not accept that the principle of the Scotland Act 1998 was that what was not reserved was devolved? These powers could easily go to the devolved nations, which could then sit around the table. Their voices would then be heard properly in any national framework, and they would not simply be told what it would be.

[Paul Masterton]

If the hon. Lady was listening, she will have heard me say that I agreed that that was the purpose of the 1998 Act. I am coming on to say explicitly that clause 11, as drafted, is not fit for purpose and must be changed. It does not need to be tweaked a little; it needs to be amended and replaced with a new version. However, I do not consider now to be an appropriate stage in the process at which to demand a new draft to be brought before the House.

I fully accept that this issue is linked to active conversations tacking place between Governments, and I share my hon. Friends’ concerns about the fact that introducing new drafting to reflect where I believe we need to, and should, end up—indeed, where we will more likely than not end up—would pre-empt what are now and are expected to continue to be fruitful negotiations between the UK and Scottish Governments. I am prepared at this stage to give the UK Government the time and opportunity to take forward these matters, on the clear understanding that both sides need to move from where they now are on clause 11. We are beginning to see movement: we can see it in the constructive JMC (EN) talks, the next meeting of which will be on 12 December, and Scottish Conservatives stand ready to help broker a compromise. In our view, the impasse is readily solvable. Most of the 111 powers are technical and regulatory.

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[Ian Murray]

I agree that all parts of the UK should be treated similarly, which is why I have always championed the UK’s staying in the single market and the customs union. That would allow us to leave the EU while keeping the regulatory harmonisation required—the very regulatory harmonisation that the hon. Gentleman railed against just a few moments ago—and keeping the UK single market operating within the EU single market.

[Dr Whitford]

On the question of where power actually lies, we know that many farmers voted leave, yet I know, having attended a National Farmers Union meeting on Friday, that the idea of farming and hill farming in Scotland being controlled from here is something they consider anathema. Given the failure to pass on the convergence uplift in 2013-14, they are frightened about farming powers being here.

[Ian Murray]

These are complex discussions and issues, but the key principle is that any power devolved under schedule 5 to the Scotland Act 1998 should be devolved. No one is saying that everything should be devolved at one minute past midnight—or whenever we leave the European Union—but these discussions must take place by means of intergovernmental processes, and the principle should be that there should be devolution at the point at which powers come back from the EU, when it is possible for that to be done.

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[Mr Jones]

No, but I can identify several people who have denied its existence. Clause 11 seeks to ensure that the integrity of the internal market is not compromised, by preserving the restrictions that prevail in respect of EU law.

It is quite clear that the proposals in clause 11 have caused immoderate anger in certain quarters. The SNP Scottish First Minister and the Labour Welsh First Minister actually joined forces to describe what is proposed as a “naked power grab”, a phrase which has been repeated again and again during this debate, but the fact is that it is nothing of the kind. The competences that are the subject of the retention proposed by clause 11 have never been exercised by the devolved authorities since devolution was first implemented. In practical terms, not one iota less power will be exercised in Belfast, Cardiff or Edinburgh than in the current state of affairs. If there is a diminution in power, it is very much theoretical.

Since the devolved bodies first condemned the proposals in the summer, it is fair to say that their position has moderated considerably. However, I find it intriguing that that position does not appear to have moderated in this House. Indeed, certain Opposition representatives seem to be at odds with their own parties in the devolved areas. Preserving the UK internal market is, after all, extremely important to every constituent part of the United Kingdom. Some 63% of Scottish exports go to the rest of the UK. For Northern Ireland, the equivalent figure is 60%. In Wales, it is a bit less at 49.2%, but I suggest that that is due to the distorting effect of Airbus exports, which form a disproportionately large element of the Welsh economy. Whichever way one looks at it, it is therefore important to guard against any policy divergence that might imperil or damage the internal market. It is also important to ensure that the UK Government have the power to conclude trade agreements with third countries post-Brexit, free from concern that the devolved authorities may be legislating in a manner contrary to the obligations contained in such agreements.

We have heard this evening that the provisions of clause 11 affect approximately 111 devolved competences in Scotland, 64 in Wales and an estimated 149 in Northern Ireland. Many of them exist in the fields of agriculture, the environment and fisheries, where it is generally agreed, not least by those who would be closely affected by market distortion, that it is necessary to preserve common frameworks. As my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) pointed out, we need to look at the individuals who are most likely to be affected by policy divergence. For example, NFU Cymru—the Welsh branch of the National Farmers Union—supports the retention of common frameworks so that the price commanded by Welsh lamb, which is certainly the highest-quality lamb in the United Kingdom, is not adversely affected by differing husbandry practices in other parts of the UK.

The UK Government have always made it clear that the retention of competence effected by clause 11 is intended to be only temporary. Decisions on where competences may lie in the long term will be taken at a later date. I fully agree that that should not take too long, and a Minister should indicate from the Front Bench what sort of timescale they anticipate the Government will adopt when deciding and agreeing with the devolved Administrations on where those competences should lie.

[Dr Whitford]

That is the problem. There is no timescale. This place is snarled up in dealing with Brexit work, and that pressure will be even greater after Brexit. Those of us from the devolved countries feel that the needs of our farmers and fishermen will be way down the agenda for the devolution work being done here.

[Mr Jones]

I remind the hon. Lady that I am also from one of the devolved countries, so I understand her point and I understand that a timescale is needed. My right hon. Friend the Secretary of State for Brexit has always made it clear that the devolved authorities will ultimately have considerably enhanced powers after this process is complete.

Mr Nigel Smith has been extensively quoted in this debate, and what he has to say is of some significance. He was the chairman of Scotland Forward, the campaign for a yes vote in the 1997 Scottish referendum, and he makes a businesslike and practical statement of the position:

“simply giving into demands from the devolved administrations for a complete takeover of powers would quickly fragment policy coherence threatening the function of the UK single market and even over time the political integrity of these islands.”

That would probably be quite welcome to certain Opposition Members. Nigel Smith continues:

“It would be necessary to establish where coherence was vital and where policy could be devolved or shared. There are also financial considerations in some areas. Temporarily retaining the powers in Westminster through clause 11 while this is assessed and negotiated seems nothing more than procedural common sense. As a long-standing devolutionist, I support the process on this basis.”

He is entirely right. It is common sense. We need to assess where powers properly lie, but that process should not take too long.

I am heartened that, at the Joint Ministerial Committee in October, the various Administrations agreed to work towards the establishment of the necessary frameworks. Contrary to what the hon. Member for Perth and North Perthshire (Pete Wishart) indicated, it is not a question of the United Kingdom Government imposing where those powers lie; it is a question of agreement. The communiqué that followed the meeting said:

“There will also be close working between the UK Government and the devolved administrations on reserved and excepted matters that impact significantly on devolved responsibilities.

Discussions will be either multilateral or bilateral between the UK Government and the devolved administrations. It will be the aim of all parties to agree where there is a need for common frameworks and the content of them.

The outcomes from these discussions on common frameworks will be without prejudice to the UK’s negotiations and future relationship with the EU.”

It seems to me that the United Kingdom Government and the devolved Administrations are moving positively towards agreement on where those competences should lie, but I stress that the process should be pursued as expeditiously as possible. I have a huge amount of sympathy for those on both sides of the House who have indicated that there is currently a degree of uncertainty. The best way of resolving that uncertainty is by working quickly and co-operatively with the devolved Administrations.

I therefore believe clause 11 should be supported by the House. I endorse once again what Nigel Smith, a practical devolutionist, has to say about the matter. I also believe those who are promoting the various amendments, most of which appear to be aimed at ensuring the powers that are repatriated pass straight to the devolved Administrations, should think again. Without a coherent agreement beforehand, there could be chaos in this country, which is frankly the last thing we want.

My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) made some important points about the wider issue of devolution. We need to revisit the various institutions that operate the devolution settlements in this country. It is fairly clear that the JMC process is not working. It has been honoured by Governments of all stripes more in the breach than in the observance. Indeed, I believe that during the last Labour Government several years passed without a meeting of the JMC. This cannot be right. It is important that the United Kingdom Government and the devolved Administrations should have regular dialogue, one with another. I am not persuaded that that needs to be put on a statutory basis, but it needs to be something more than a chore for the various Administrations. It is important that a dialogue be constantly maintained. We are moving into a new era in this country, a post-Brexit one, and it is important that there should be that constant dialogue and that all Administrations within the UK understand that they all have a duty, one to another, to work positively to ensure the prosperity of this country and its citizens. At the moment, that is not happening and this needs to be revised and reviewed. I do not believe this Bill is the proper vehicle for such changes, but once this process is over we are going to need to look at those institutions again carefully. We need to move into that new era.

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[Chris Skidmore]

No, only once for each person. I will give way to the hon. Member for Central Ayrshire (Dr Whitford).

[Dr Whitford]

Why will having a Brexit date give certainty and clarity, yet having a date on which the powers would move to the devolved Governments is considered unacceptable?

[Chris Skidmore]

We will be discussing the clause 10 powers to which the hon. Lady refers on a separate day—on the morning of day five. Clause 11 is about ensuring that the statute book is prepared for exit day. In a way, exit day provides that temporary limit. We know that we need to make changes to the common framework, but beyond that, we do not yet know what the negotiation period will look like when it comes to ensuring that we need an implementation period. That is why we cannot necessarily provide that certainty.