United Kingdom Internal Market Bill Debate

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Department: Cabinet Office

United Kingdom Internal Market Bill

Robert Neill Excerpts
2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020

(3 years, 7 months ago)

Commons Chamber
Read Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Notices of Amendments as at 11 September 2020 - (14 Sep 2020)
Boris Johnson Portrait The Prime Minister
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My hon. Friend is entirely right. Absurd and self-defeating as that action would be, even as we debate this matter, the EU has not taken that particular revolver off the table. I hope that it will do so and that we can reach a Canada-style free trade agreement as well.

It is such an extraordinary threat, and it seems so incredible that the EU could do this, that we are not taking powers in this Bill to neutralise that threat, but we obviously reserve the right to do so if these threats persist, because I am afraid that they reveal the spirit in which some of our friends are currently minded to conduct these negotiations. It goes to what m’learned friends would call the intention of some of those involved in the talks. I think the mens rea—

Robert Neill Portrait Sir Robert Neill (Bromley and Chislehurst) (Con)
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Will the Prime Minister give way?

Boris Johnson Portrait The Prime Minister
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I give way to my right hon. and learned Friend.

Robert Neill Portrait Sir Robert Neill
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I never object to another promotion.

I have listened carefully to what the Prime Minister says, but does he accept that were our interlocutors in the EU to behave in such an egregious fashion, which would clearly be objectionable and unacceptable to us, there is already provision under the withdrawal agreement for an arbitrary arrangement to be put in place? Were we to take reserve powers, does he accept that those reserve powers should be brought into force only as a final backstop if we have, in good faith, tried to act under the withdrawal agreement and are then frustrated? The timing under which they come into force is very important for our reputation as upholders of the rule of law.

Boris Johnson Portrait The Prime Minister
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My hon. Friend is absolutely right in what he says. He knows a great deal about this matter, and it is of great importance that we go through the legal procedures, as we will. As things stand, however, in addition to the potential blockade on agricultural goods, there are other avenues that the EU could explore if it is determined to interpret the protocol in absurd ways, and if it fails to negotiate in good faith. We must now take a package of protective powers in the Bill, and subsequently.

For example, there is the question of tariffs in the Irish sea. When we signed the protocol, we accepted that goods “at risk” of going from Great Britain into the EU via Northern Ireland should pay the EU tariff as they crossed the Irish sea—we accepted that—but that any goods staying within Northern Ireland would not do so. The protocol created a joint committee to identify, with the EU, which goods were at risk of going into Ireland. That sensible process was one achievement of our agreement, and our view is that that forum remains the best way of solving that question.

I am afraid that some in the EU are now relying on legal defaults to argue that every good is “at risk”, and therefore liable for tariffs. That would mean tariffs that could get as high as 90% by value on Scottish beef going to Northern Ireland, and moving not from Stranraer to Dublin but from Stranraer to Belfast within our United Kingdom. There would be tariffs of potentially more than 61% on Welsh lamb heading from Anglesey to Antrim, and of potentially more than 100% on clotted cream moving from Torridge—to pick a Devonshire town at random—to Larne. That is unreasonable and plainly against the spirit of that protocol.

The EU is threatening to carve tariff borders across our own country, to divide our land, to change the basic facts about the economic geography of the United Kingdom and, egregiously, to ride roughshod over its own commitment under article 4 of the protocol, whereby

“Northern Ireland is part of the customs territory of the United Kingdom.”

We cannot have a situation where the boundaries of our country could be dictated by a foreign power or international organisation. No British Prime Minister, no Government, and no Parliament could ever accept such an imposition.

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Edward Miliband Portrait Edward Miliband
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The right hon. Gentleman did not like the protocol at all. He would rather have not had the protocol. He and I just have a disagreement on this issue. I believe it was necessary to make special arrangements for Northern Ireland, or for the UK to be in the EU customs union to avoid a hard border in Ireland. That is why the Prime Minister came along and said the protocol was the right thing to do.

Let me deal with the third excuse we heard. This is the “It was all a bit of a rush” excuse. As the Prime Minister said in his article, times were “torrid” and there were “serious misunderstandings”. He tries to pretend that this is some new issue, but they have been warned for months about the way the protocol would work. The Chancellor of the Duchy of Lancaster, who is sitting in his place, was warned at the Select Committee in March and was asked about these issues. The Business Secretary was written to by the House of Lords Committee in April.

Let us just get this straight for a minute, because I think it is important to take a step back. The Prime Minister is coming to the House to tell us today that his flagship achievement—the deal he told us was a triumph, the deal he said was oven-ready, the deal on which he fought and won the general election—is now contradictory and ambiguous. What incompetence. What failure of governance. How dare he try to blame everyone else? I say to the Prime Minister that this time he cannot blame the right hon. Member for Maidenhead (Mrs May), he cannot blame John Major, he cannot blame the judges, he cannot blame the civil servants, he cannot sack the Cabinet Secretary again. There is only one person responsible for it and that is him. This is his deal. It is his mess. It is his failure. For the first time in his life, it is time to take responsibility. It is time to ’fess up: either he was not straight with the country about the deal in the first place, or he did not understand it.

A competent Government would never have entered into a binding agreement with provisions they could not live with. If such a Government somehow missed the point but woke up later, they would do what any competent business would do after it realised it could not live with the terms of a contract: they would negotiate a way out in good faith. That is why this is all so unnecessary. There is a mechanism designed for exactly this purpose in the agreement: the Joint Committee on the Northern Ireland protocol. What did the Chancellor of the Duchy of Lancaster say on 11 March at the Committee on the Future Relationship with the European Union? He will recall that he was asked about state aid. He said:

“the effective working of the protocol is a matter for the Joint Committee to resolve.”

The remaining issues to which the Bill speaks are not insignificant, but nor are they insurmountable, and that is the right way to pursue them, not an attempt at illegality.

Let me come back to the excuses. Fourthly, on Sunday, there was the Justice Secretary’s “the fire alarm” defence: “We don’t want to have to do this, but we might have to.” I want to be clear with the House about something very, very important about a decision to pass the Bill. I have great respect for the hon. Member for Bromley and Chislehurst (Sir Robert Neill), but I want to make this point. The very act of passing the Bill is itself a breach of international law. It would be wrong for hon. and right hon. Members on either side of the House to be under any illusions about that as they decide which Lobby to go into tonight. If we pass the Bill, even if there is a nod and a wink from the Prime Minister to the hon. Member for Bromley and Chislehurst, we equip the Government with the power to break the law. That in itself is a breach of the Northern Ireland protocol and therefore a breach of international law.

Robert Neill Portrait Sir Robert Neill
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I have listened carefully to the right hon. Member’s formulation and I understand much of what he says. However, an Act passed by this House only becomes law when it comes into force. He will be right, I submit, to say that as soon as any of these provisions came into force we would potentially breach international law. That is not quite the same thing, as I think he would fairly concede.

Edward Miliband Portrait Edward Miliband
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That is not a risk we are going to take.

So the fire alarm defence simply does not work. The last defence was floated as a trial balloon, one might say, by the Northern Ireland Secretary last Tuesday, I believe. He said it was a breach of the law in a “specific and limited way.” That really is a new way of thinking about legal questions. It now turns out that breaking the law specifically and in a limited way is a reasonable defence for this Government. We have all heard of self-defence, the alibi defence, the innocence defence; now we have the Johnson defence: you can break the law, but in a specific and limited way.

Think about the grave context we face. The Home Secretary is in today’s newspapers warning everyone, “You must abide by the law.” On this, she is absolutely right. She says,

“I know that, as part of our national effort, the law-abiding majority will stick to these new rules. But there will be a small minority who do not”.

You couldn’t make it up. What she does not say in the article, but what we now know about this Government, is that the Johnson defence means something very specific: there is one rule for the British public and another rule for this Government. Pioneered by Cummings, implemented by Johnson—that is the Johnson rule.

This is the wrong thing to do. It is not necessary and it is deeply damaging to this country. Let us think about the impact on our country in the negotiations. The Government’s hope is that it will make a deal more likely, but that relies on the notion that reneging on a deal we made less than a year ago with the party we are negotiating with now will make that party more likely to trust us, not less. Think about our everyday lives: suppose we made an agreement with someone a year ago and we were seeking to have another negotiation with them; if we had unilaterally reneged on the first deal we made, would it make them more likely to trust us, or less likely? Obviously, it would make them less likely to trust us.

We know the risks. I very much hope the Prime Minister gets a deal. As a country, we absolutely need a deal. We know the risks of no deal if this strategy goes wrong. The Prime Minister said last week that no deal is somehow “a good outcome”. He is wrong. I hear all the time from businesses—I am sure the Business Secretary, who is in his place, does too—that are deeply worried about the danger of no deal. I know what the Prime Minister thinks about the views of business, thanks to his four-letter rant, but this is what businesses have to say. Nissan says there could be no guarantee about its Sunderland plant if there were tariffs on UK to EU trade. Ford says that no deal would be disastrous. The NFU says it would be catastrophic for British farming—indeed, the Chancellor of the Duchy of Lancaster, when he was Secretary of State for Environment, Food and Rural Affairs, said the same thing. We are in the biggest economic crisis for 300 years, the biggest public health crisis for 100 years. No deal is not some game; it is about the livelihoods of millions of people across our country.

What about the prized trade deal with the United States? I know the Prime Minister thinks he has a friend in President Trump, but even he must recognise the necessity of being able to deal with both sides. The Speaker of the House of Representatives, Nancy Pelosi, said:

“The UK must respect the Northern Ireland Protocol as signed with the EU… If the UK violates that international treaty and Brexit undermines the Good Friday accord, there will be absolutely no chance of a US-UK trade agreement passing the Congress.”

This is the signal that we—the country known for the rule of law, the country that abides by the law, the country that founded international law—are sending to our friends and allies around the world. That is why we cannot support the Bill.

The Government must go back, remove the provisions breaking international law and ensure that the Bill works in a way that respects the devolution settlements. That is what a responsible, competent and law-abiding Government would do. This is a pivotal moment to determine the future of our country—who we are and how we operate. In shaping that future, we have to stand up for the traditions that matter: our commitment to the rule of law. The Bill speaks of a Government and a Prime Minister who are casual, not to say cavalier and reckless, about the gravity of the issues confronting them. The Prime Minister should be focusing on securing a Brexit deal, not breaking international law and risking no deal. He is cavalier on international law and cavalier on our traditions. This is not the serious leadership we need, and it is why we will oppose the Bill tonight.

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Robert Neill Portrait Sir Robert Neill (Bromley and Chislehurst) (Con)
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I will endeavour to prove that the best advocacy can be the most concise.

There is a great deal in the Bill that I support and that is necessary, sensible and desirable. However, there is one important part of the Bill that creates very real difficulty for me and many others, and I want to go straight to the rub of that point. Part 5 of the Bill, as it stands, gives me real concern as to its leading the United Kingdom into a breach of our international obligations and the law that stems from them. That is, as many others have observed, not something that any country should do, save in the most extreme and pressing circumstances.

The difficulty arises in relation particularly to clauses 42, 43 and 45. They are different from the rest of the Bill, because they give very wide-ranging powers indeed to Ministers to disapply elements of the withdrawal agreement and the protocol, which have the force of international law, by regulation. These are measures of a very sweeping kind, involving any kind of legislation and any part of the agreement, not just those related to the protocol, and appearing to oust the jurisdiction of the courts in any respect. I question whether their being so wide can be justified.

My other concern is that the way the clauses are phrased at the moment runs the risk of bringing us into breach of our legal obligations before it is necessary. I heard what the Prime Minister said about an insurance policy, and I heard what the Lord Chancellor has said about a “break the glass in emergency” provision. That is fine, but it seems clear from the protocol that there are steps that must be gone through first and exhausted before that can properly be done. The most important part to bear in mind is that if article 45 is brought into force immediately after Royal Assent, we would at that point have disapplied the concept of the direct effect of European law, which is part of the agreement we signed up to and which this House passed less than a year ago. So bringing it into force on Royal Assent is needlessly provocative to our negotiations and needlessly undermines our reputation for sticking to the rule of law.

There are also provisions that bind us to act to resolve disputes only through the arbitration process, which is set out in the withdrawal agreement. Article 168, which we have signed up to, states that

“the Union and the United Kingdom shall only have recourse to the procedures provided for in this Agreement.”

There are detailed procedures and timelines for that.

It seems to me that we should be very careful about moving forward with bringing these clauses into force until every opportunity to resolve any dispute has been carried out through the arbitral mechanisms. Only then, and if it is necessary because the EU has not responded to a result of the arbitral mechanism—

Jeremy Wright Portrait Jeremy Wright
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Does my hon. Friend agree that one thing that should give us some optimism about the use of the mechanisms that he is describing is the specific references to the defence of the Good Friday agreement and of Northern Ireland’s status as part of the United Kingdom in the protocol and the withdrawal agreement themselves?

Robert Neill Portrait Sir Robert Neill
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My right hon. and learned Friend is absolutely right. That is, I think, the best approach for us to take. We should stick to the letter of those provisions, as that gives proper defence of our strategic interests. For example, there is the safeguard provision in article 16, which would enable us to act if, in extremis, the stability of the situation in Northern Ireland and the Union was threatened, but we could do that while maintaining the moral high ground and our intellectual reputation. I see that the Chancellor of the Duchy of Lancaster is listening. I hope that he will be able to go further than the Prime Minister, either tonight or in the course of debates on the Bill, and assure us that those provisions will not be brought into effect unless and until every one of the legal mechanisms open to us has been exhausted and unless and until there has been a specific vote of this House—not by a statutory instrument, which does not give enough scrutiny for such a constitutionally significant issue, but by a specific resolution. That is why my amendment seeks to give the Government an opportunity to have that “break the glass in emergency” provision, but without our triggering a breach of the international legal obligations before it is absolutely necessary.

Steve Brine Portrait Steve Brine
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Further to that, does my hon. Friend not agree that, while there will be some who are still on the, shall we say, Blair end of the argument, notwithstanding what he says, that position would be seen by the majority of people as being a reasonable one for us to take in this Act before we enact the nuclear button that is so often talked about? Would that not be reasonable?

Robert Neill Portrait Sir Robert Neill
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I agree entirely with my hon. Friend, and I do hope that the Government will listen carefully to that. I want to be able to support the Bill. I cannot support it with these clauses in it as they are at the moment. I hope that we will take the opportunity to change and improve these clauses and the way in which they might operate so that we do not fall into a means of damaging our reputation. That is why I cannot support the Bill tonight. I hope that we will see amendments to change what I believe are the egregious, needless and potentially damaging elements of part 5 of the Bill. Unless there are those changes, I will have further difficulty in supporting the Bill. None the less, having listened to what the Prime Minister has said, I want to give the Government that chance in a constructive spirit, and I know that the Chancellor of the Duchy of Lancaster is listening carefully to that.

I do hope that the Government recognise that to act in a way that unilaterally breaches our international obligations is wholly against the spirit of what this country stands for. It is against the spirit, I think, of the party that he and I have always adhered to as a party of the rule of law, and we need to find a constructive means of making sure that we meet our obligations to the Union, but without undermining our obligations to the rule of law. I do not believe that is impossible with good will.