Leaving the EU: Data Protection

Robert Courts Excerpts

Thursday 12th October 2017 Commons Chamber

[Robert Neill (Bromley and Chislehurst) (Con)]

I will not stray on to the issue of authors, living or dead, but I do want to address three issues in this important debate.

The first picks up from where the shadow Minister left off. As a London MP, one cannot but be aware of the significance of tech companies and the digital industry to our economy. That is part of what makes London the world’s financial capital, and getting our position right on these issues and maintaining it is absolutely critical to our arrangements going forward.

As hon. Members know, I come at this debate as someone who rather wishes we were not in this situation, but given that we are, getting the detail right is absolutely vital. I understand and support the thrust behind the Bill and what the Minister very fairly said in his opening speech, but the detail is terribly important.

Only this week, I was at a meeting of the all-party parliamentary group on wholesale financial markets and services, where a number of representatives of the financial services sector, including Citi UK and UK Finance, raised the real issue that while we talk a great deal about the need to preserve regulatory equivalence and other means of achieving access to the single market once we have left it, data sharing is, to some degree, the elephant in the room and is often not spoken about. The director of one of London’s leading accountancy and consultancy firms described it to me as a huge issue that needs to be tackled.

The Minister is right to recognise the issue, and the Bill, of itself, is right and proper, but getting the detail right will go well beyond that. When he replies, I hope he will be able to assure us that his Department and the other relevant Departments are keeping in close contact with our financial sector. There are people with massive expertise out there, and they are willing to help the Government on this, and it is critical that we get it right for the future health of the UK.

None of us wants to see London’s position as the world’s financial capital diminished, and that is not in the EU’s interests either, because, in many respects, London, as a financial and digital capital, has been a gateway into European markets for many third-country investors. We want that to remain the case, so getting these issues right is terribly important.

My second point was highlighted by the right hon. Member for Carshalton and Wallington (Tom Brake). I agree with him about Gibraltar, and I declare an interest as the chair of the all-party parliamentary group on Gibraltar. I recently returned from Gibraltar’s national day celebrations, and you are fondly remembered there as an active former member of the group and as a good friend to Gibraltar, Madam Deputy Speaker.

Cross party, members of the all-party group were struck by the importance of this issue to Gibraltar. Gibraltar has revived its economy in recent years, moving away from what was essentially a garrison-type economy to an economy that is strongly based on financial services and online digital operations of a number of kinds—they are now the most important part of the economy. As the Minister says, Gibraltar is a successful part of the British family—a self-governing British overseas territory that is entirely financially self-supporting. It is to Gibraltar’s credit that it has been at pains throughout this period closely to mirror United Kingdom and European Union regulatory arrangements, and it ticks all the boxes in regulatory terms.

[Robert Courts (Witney) (Con)]

I think I am right in saying that the UK has the largest digital economy in the G20. If that is the case—it is obviously imperative that we are able to continue that in the years ahead—the impact of these issues will be just as great on Gibraltar, if not larger.

[Robert Neill]

My hon. Friend is absolutely right. The two key messages that one gets on this topic from Gibraltarians across the political spectrum and from all parts of Gibraltarian society are, first, that they do not want to be left behind in any arrangements that the UK makes with the EU27—they do not want to be collateral damage in any sense—and they want to maintain the arrangements and access that we have. Secondly, they want above all to maintain the closest possible friction-free trading arrangements with the UK, where a great deal of their service business is already conducted. Getting that right is terribly important for Gibraltar. It is a small economy with little other resilience, and it really needs our support in getting the data issues right to protect what is a very successful story for the British family.

My third point relates to legal matters. I take the liberty of referring to the Justice Committee’s ninth report from the 2016-17 Session of the last Parliament. As hon. Members will know, I have the honour to chair that Committee, and we issued a report on the implications of Brexit for the justice system. I hope we will soon have a response from the Government to that report; it is one of those that is in Ministers’ in-tray—or, I hope, out-tray—at the Ministry of Justice. Perhaps a gentle nudge might be delivered by those on the Treasury Bench to their right hon. Friends there.

The report is constructive and stresses the importance of information-sharing arrangements for the legal system and the justice system. Part of that relates to the UK’s legal services, and that links in to what I said earlier about the financial services sector in London. The legal service sector underpins a great deal of that financial services work, so getting this issue right is critical for UK firms contracting with parties in the EU or with third parties. At the moment, a great deal of work is written in English law, and that is a great advantage to us, so getting the data sharing right around all those matters is terribly important to the firms involved.

However, the other issue in our report, which is perhaps even more strikingly important, relates to information sharing on policing and critical justice co-operation. In many respects, we have led the field in this regard, and it will certainly not be the intention of the Government or of the Prime Minister, who both as Prime Minister and as Home Secretary has stressed the importance of this issue, to lose any of that information sharing. However, again, the devil is always in the detail in these matters, and perhaps I can highlight what the Committee found.

We took a considerable amount of evidence, and it is clear that the EU offers a number of information-sharing tools. I particularly want to highlight the importance of the European criminal records information system. We are in that at the moment, and it was clear from the professionals in the field who gave evidence to us that we must do all we can to maintain access to that system. It provides access to accurate records of EU citizens’ offending histories.

It is perhaps worth putting on the record a quote from the National Crime Agency. Its evidence was:

“Through ECRIS, the UK is able to exchange tens of thousands of pieces of information about criminal convictions each year that help police and other law enforcement agencies to investigate crime, protect the public and manage violent and sexual offenders.”