60 Steve Baker debates involving the Department for Exiting the European Union

Wed 20th Dec 2017
European Union (Withdrawal) Bill
Commons Chamber

Committee: 8th sitting: House of Commons
Tue 12th Dec 2017
European Union (Withdrawal) Bill
Commons Chamber

Committee: 6th sitting: House of Commons
Wed 6th Dec 2017
European Union (Withdrawal) Bill
Commons Chamber

Committee: 5th sitting: House of Commons
Tue 7th Nov 2017

European Union (Withdrawal) Bill: Standing Orders

Steve Baker Excerpts
Thursday 11th January 2018

(6 years, 4 months ago)

Written Statements
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Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
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I am today placing in the Library of the House the Department’s analysis on the application of Standing Order No. 83L in respect of the amendments to the European Union (Withdrawal) Bill made at Commons Committee stage and of the amendments proposed by the Government for Report stage. These amendments do not change the conclusion of the original analysis in the Bill’s explanatory notes.

[HCWS400]

European Union (Withdrawal) Bill

Steve Baker Excerpts
Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
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I am happy to tell the Committee that that is the case, as I shall confirm later.

Oliver Letwin Portrait Sir Oliver Letwin
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I am delighted by that. It is important to people on both sides of the arguments that it be something that Parliament can do, not that Ministers may simply do on their own. I know that my hon. Friend the Member for North East Somerset (Mr Rees-Mogg), my south-western neighbour at the end of the Bench, very much agrees with that proposition, as does my right hon. and learned Friend the Member for Beaconsfield in the middle.

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Steve Baker Portrait Mr Baker
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I rise on this eighth day of eight to propose that clauses 14 and 15, 18 and 19 and schedules 6, 8 and 9 stand part of the Bill.

Over the course of the eight days of debate, we have had almost 500 amendments tabled and more than 30 separate Divisions. I am very happy that, in this section of the debate today, the amendments under consideration run to just 39 pages.

Dominic Grieve Portrait Mr Grieve
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Will the Minister give way?

Steve Baker Portrait Mr Baker
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I did want to make a serious point.

Dominic Grieve Portrait Mr Grieve
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This is a serious point.

Steve Baker Portrait Mr Baker
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May I make my serious point first, and then give way?

It is sometimes said of this House that it does not scrutinise legislation well and that we send Bills to the other place in a mess. On this occasion, on this historic Bill, I think that the House of Commons has shown itself equal to the task of scrutinising important constitutional legislation. With that, I will very gladly give way.

Dominic Grieve Portrait Mr Grieve
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I am most grateful to my hon. Friend. What I wanted to say was that, at the start, there was some disquiet over the timetable motion, and, actually, the Government responded positively on that. The evidence suggests to me that, in fact, the timetable has matched the scope of the amendments that we have had to consider, and that is greatly to the credit of the Government that that has happened, and I am very grateful to him for it.

Steve Baker Portrait Mr Baker
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I am very grateful to my right hon. and learned Friend. For all the fire and smoke that we have had over the course of this debate, there has been quite a lot of consensus.

Wera Hobhouse Portrait Wera Hobhouse
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Will the Minister give way?

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Steve Baker Portrait Mr Baker
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No, I wish to move on to my next point.

On this point about consensus, the Government have listened and responded to constructive challenge from all parts of the House. Earlier in the process, the Government tabled amendments to set a single exit day in the Bill, to which I will return. We tabled an amendment to provide extra information about equalities impacts and the changes being made to retained EU law under the powers in the Bill. We have announced the intention to bring forward separate primary legislation to implement the withdrawal agreement and the implementation period in due course. We published a right-by-right analysis of the charter of fundamental rights, and we have made it clear that we are willing to look again at some of the technical detail of how the Bill deals with general principles to ensure that we are taking an approach that can command the support of Parliament.

Finally on this point, the Government have listened to representations set out during debate on day six, and indeed on Second Reading, and have accepted the Procedure Committee’s amendments to establish a sifting committee. We fully recognise the role of Parliament in scrutinising the Bill and have been clear throughout that we are taking a pragmatic approach to this vital piece of legislation. Where MPs and peers can improve the Bill, we will work with them.

Steve Baker Portrait Mr Baker
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Before I move on to the specific clauses and schedules, I will give way just very briefly.

Stephen Gethins Portrait Stephen Gethins
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The Minister is being very generous. It would be very useful to Members on the SNP Benches if, during his speech, he set out even in principle some of the amendments that were promised by the Secretary of State for Scotland.

Steve Baker Portrait Mr Baker
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As the hon. Gentleman should know, my hon. and learned Friend the Solicitor General promised a Report stage, and we will indeed have that Report stage and we look forward to it.

Steve Baker Portrait Mr Baker
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I will give way to the hon. Lady; she has been so patient.

Wera Hobhouse Portrait Wera Hobhouse
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I thank the Minister for giving way. He is generous. As a new MP, I must say that I am very surprised about how little constructive dialogue there has been. In fact, the comment that those on the Government Benches could deal with all of this without having to deal with the Opposition was alarming. We are all here to make constructive comments, to improve the Bill and to make compromises. The comments that they could deal with it all without having to listen to the Opposition or to have constructive dialogue were both alarming and disappointing.

Steve Baker Portrait Mr Baker
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The hon. Lady reminds me of how much I miss the days of coalition on some occasions.

The clauses and schedules that we are debating in this final group contain a number of detailed, necessary and technical provisions. In many cases, they are standard provisions that one would expect to see in any Bill.

Clause 14 is a technical and standard provision that sets out important definitions of many key terms that appear throughout the Bill, such as “EU tertiary legislation” and “EU entity”, and clarifies how other references in the Bill are to be read. Clause 15 complements clause 14, setting out in one place where the key terms used throughout the Bill are defined and noting where amendments to the Interpretation Act 1978 are made under schedule 8. Together, clauses 14 and 15 will aid comprehension of the Bill.

Clause 18 provides that the Bill will apply to the whole UK. In addition, because the European Communities Act 1972 currently extends to the Crown dependencies and Gibraltar in a limited way, the repeal of that Act must similarly extend to those jurisdictions to the extent that it applies to them. The Bill also repeals three Acts that extend to Gibraltar, all of which relate to European parliamentary elections. The powers in clauses 7 and 17 can be used to make provision for Gibraltar as a consequence of these repeals. The approach in clause 18 has been agreed with the Governments of Guernsey, Jersey, the Isle of Man and Gibraltar in line with usual practice.

Steve Baker Portrait Mr Baker
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Well, I am going return to the subject of Gibraltar at considerable length later. [Interruption.] I am grateful to my hon. Friend for allowing me to continue.

As is typical with all Bills, clause 19 sets out which parts of the Act will commence immediately at Royal Assent, and provides a power for Ministers to commence other provisions at different times by regulations. Schedule 6 is linked to clause 3, which we debated on day two in Committee. That clause converts into domestic law direct EU legislation as it operates at the moment immediately before we leave the EU. There are, however, some EU instruments that have never applied in the UK—for example, instruments in respect of the euro and measures in the area of freedom, security and justice in which the UK chose not to participate. It would obviously be nonsense to convert these measures into domestic law after we leave, so these exempt EU instruments, to which clause 3 will not apply, are described in schedule 6.

Hon. Members will know that consequential provisions are a standard part of many Acts in order to deal with the effects of the Act across the statute book. Equally, transitional provisions are a standard way in which to smooth the application of a change in the UK statute book. Schedule 8 makes detailed and technical provisions of this nature, all of which are necessary and support the smooth operation of other crucial provisions set out elsewhere in the Bill. It clarifies what will happen to ambulatory references—I will return to this topic—to EU instruments after exit day, makes consequential and necessary amendments to other Acts, and makes transitional provision in relation to the establishment of retained EU law and the exceptions to it. Finally, schedule 9 sets out additional and necessary repeals as a consequence of our exit from the EU.

Paul Farrelly Portrait Paul Farrelly
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During the Minister’s course through the amendments, has he perhaps noticed new clause 54, which was tabled by the right hon. and learned Member for Rushcliffe (Mr Clarke) following the Prime Minister’s Florence speech? If he has noticed it, what does he think of it?

Steve Baker Portrait Mr Baker
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I am most grateful to the hon. Gentleman for his comments, but I am only just beginning to conclude my opening remarks—I am only eight minutes in. I will come to the new clause in the name of my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) a little later. I will not rush on this occasion.

I turn to amendments 399 to 405 in the name of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin); I am grateful to him for tabling them. I also pay tribute to my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox), my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) and, if I may say so, my hon. Friend the Member for Basildon and Billericay (Mr Baron), who I understand has worked hard behind the scenes to create consensus for these amendments. These amendments are closely linked to amendments 6, 43, 44 and 45, which were discussed on the first day in Committee, and Government amendments 381 to 383.

The Prime Minister has made it clear that the United Kingdom will cease to be a member of the European Union on 29 March 2019 at the conclusion of the article 50 process. The Government have recognised the uncertainty that many people felt as to whether the exit day appointed by this Bill would correspond to the day that the UK leaves the EU at the end of the article 50 process, and that is why we brought forward our own amendments setting out when exit day will be. The purpose of our amendments is straightforward: we want to be clear when exit day is and, in the process, to provide as much certainty as we can to all. In the course of that, we want to align domestic legislation to the international position, as has been set out.

Amendments 399 to 405 build on and complement the Government amendments setting exit day. We have always said that we would listen to the concerns of the House, as we have done throughout the Bill’s passage. As part of that, the Government have had discussions with my right hon. Friend the Member for West Dorset, and we are grateful that he tabled his amendments. They provide the Government with the technical ability to amend the date, but only if the UK and the EU unanimously decide to change the date at which treaties cease to apply to the UK, as set out in article 50.

Only one exit day can be set for the purposes of the Bill, and any statutory instrument amending exit day will be subject to the affirmative procedure. As I said in an intervention, we will bring forward an amendment on Report to make this requirement clear on the face of the Bill.

Helen Goodman Portrait Helen Goodman
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Could the Minister set out for the whole Committee—not just the Conservative Members sitting behind him—what will happen if the legislation provided for in amendment 7, which we passed last week, is not passed? The Minister, using amendment 381—whether or not it is itself amended by amendment 400—will still have the power to set the exit date and withdraw, irrespective of what has gone on. Is that not right?

Steve Baker Portrait Mr Baker
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The hon. Lady is trying to pre-empt some of my remarks. If she will bear with me, I will come to that.

A crucial point is that the Bill does not determine whether the UK leaves the EU; that is a matter of international law under the article 50 process. However, it is important that we have the same position in UK law that is reflected in European Union treaty law. That is why the Government have signed these amendments, and I was glad to do so.

I can assure the Committee we would use this power only in exceptional circumstances to extend the deadline for the shortest period possible, and that we cannot envisage the date being brought forward. As my right hon. Friend the Prime Minister has said many times, we and the EU are planning on the UK leaving the European Union at 11 pm on 29 March 2019.

Bernard Jenkin Portrait Mr Jenkin
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I apologise to the Committee for having had to be in the Liaison Committee for the last couple of hours and for missing much of the debate. I thank my hon. Friend for accepting these compromise amendments. The Government are, in fact, accepting a very significant limitation on the powers they had in the original draft of the Bill. If we are interested in the sovereignty of Parliament, we are interested in limiting the room for Government to set arbitrary dates without any controls over them whatever. That is what existed in the Bill before. There is now proper control by Parliament of the date in the Bill.

Steve Baker Portrait Mr Baker
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I am grateful to my hon. Friend. I would also like to say thank you to him for the role he has played in bridging the spectrum of opinion on this issue.

Helen Goodman Portrait Helen Goodman
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How can it be right to tell the House that the exit date is being set by the House, when the amendments give the power to the Executive to set the exit date?

Steve Baker Portrait Mr Baker
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It is an interesting question that the hon. Lady asks, but how does she think that exit day would be set by the House? If it is not set on the face of the Bill and immovable other than by primary legislation, it must be set in secondary legislation. I would have thought that that was plain to the hon. Lady. We have done the right and pragmatic thing, which is to align UK law with the international treaty position. That enjoys wide support across a spectrum of opinion, and I am glad to support these amendments in the way I have set out.

Let me turn to the issue of the customs union, and I particularly noted what my right hon. Friend the Member for West Dorset said about it. The issue has been widely aired, and I do not intend to be tempted into a broader debate on trade policy. We are confident that we will negotiate a deep and special partnership with the EU, spanning a new economic relationship and a new relationship on security. Businesses and public services should only have to plan for one set of changes in the relationship between the UK and the EU, so we are seeking a time-limited implementation period during which access to one another’s markets should continue on current terms. During this implementation period, EU nationals will continue to be able to come and live and work in the UK, but there will be a registration system. The details of the implementation period are of course a matter for negotiations, and we have been clear that we will bring forward the necessary implementing legislation in due course. However, it would not be right to sign up now to membership of the customs union and the single market pending the outcome of negotiations, as new clause 52 would have us do.

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Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
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The Minister, and the Prime Minister for that matter, repeatedly say that businesses will only have to plan for one set of changes. Given that businesses currently benefit from being part of the single market and the customs union, how can it possibly be the case, as the Prime Minister has also said, that we are coming out of the customs union and the single market during the so-called implementation period?

Steve Baker Portrait Mr Baker
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The hon. Lady tempts me to dilate on the details of the implementation period, which are to be negotiated, but that is not my purpose today, because it is not the purpose of this Bill. The purpose of this Bill is to deliver a functioning statute book as we leave the European Union.

With that in mind, I turn to new clauses 10 and 54 on the transitional or implementation period. Both new clauses seek to impose conditions on what form the implementation period the Government are seeking will take. I am grateful to my right hon. and learned Friend the Member for Rushcliffe for his new clause, which attempts to write the Prime Minister’s vision for an implementation period into statute. That would be a novel constitutional change. Nevertheless, I welcome it in the sense that it is a ringing endorsement of Government policy. New clause 10, however, differs in some key regards from our vision.

The Government cannot accept these new clauses. The Prime Minister has set out a proposal that is now subject to negotiation. We are confident of reaching that agreement, but it would not be sensible for the Government to constrain themselves domestically in any way while those negotiations continue. We are making good progress, and it is in our mutual interests to conclude a good agreement that works for everyone. We do not want to put the legislative cart before the diplomatic horse.

Lord Clarke of Nottingham Portrait Mr Kenneth Clarke
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In referring to the transitional or the implementation period, my hon. Friend has at various times used phrases straight out of the Florence speech, and he has accepted that the new clause in my name is identical to stated Government policy on the subject. In what way does it restrain the Government’s position to put their own policy in the Bill and ask the Prime Minister, as the new clause does, to seek to attain that which she has declared to be her objective? That is not a genuine reason for rejecting it. He is rejecting it because agreeing with the Florence speech still upsets some of our more hard-line Eurosceptics both inside and outside the Government.

Steve Baker Portrait Mr Baker
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I pick up my right hon. and learned Friend on a couple of things. First, he has used the word “identical”—I did not use it because I have not taken the time to go through his new clause absolutely word for word to check his work.

Paul Blomfield Portrait Paul Blomfield
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You haven’t read it!

Steve Baker Portrait Mr Baker
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Of course I have read it—it is here in my hand. I have read it but I have not gone back and done his homework for him to check and mark his work.

I make two points to my right hon. and learned Friend. First, as I said, it would be a constitutional innovation to begin putting statements of policy for negotiations in legislation. That is a good reason not to accept the new clause. The second point—[Interruption.] He says that it is not a good reason. He is the Father of the House and he has occupied many of the great offices of state. I would be interested to know when, in his long and distinguished career, he accepted that principle in legislation.

Lord Clarke of Nottingham Portrait Mr Kenneth Clarke
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I have never previously seen members of the Government debate a clear exposition of Government policy from the moment it is first announced. That gives rise to serious doubts about exactly what the Government are going to pursue in the transition deal, and these exceptional and unprecedented circumstances are doing harm to Britain’s position. I cannot see what harm would be done by giving the approval of the whole House to the Government’s stated objectives in the Bill. The fact that it has not been done before is not an argument against it; it answers a situation that has not happened before, either.

Steve Baker Portrait Mr Baker
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My right hon. and learned Friend has caught himself in a contradiction. In this exchange, he has rested his argument on knowing exactly what the Government’s policy is, but in his last intervention he said that he did not know what it was.

My second point concerns subsection (2) of my right hon. and learned Friend’s new clause—[Interruption.] I would just like to make this point. The subsection states:

“No Minister of the Crown shall appoint exit day if the implementation and transition period set out in subsection (1) does not feature in the withdrawal arrangements between the UK and the European Union.”

That would cause a problem if the new clause were accepted and we reached the point at which the treaties no longer applied to the United Kingdom. We would have legal chaos—my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) talked about this earlier—if we had not commenced this Bill when the treaties ceased to apply. For both those reasons, we simply could not accept the new clause.

None Portrait Several hon. Members rose—
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Steve Baker Portrait Mr Baker
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There is a sudden flurry of interest in this point. I will take an intervention from the right hon. Member for Birkenhead (Frank Field), and then I will move on. [Hon. Members: “Ah!”]

Lord Field of Birkenhead Portrait Frank Field (Birkenhead) (Lab)
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Ah! They are like spoiled children, aren’t they?

Is not another objection, if not the real objection, to the point made by the right hon. and learned Member for Rushcliffe (Mr Clarke) that it is the sort of point that should have been made in a Second Reading debate? We have two days for Report and Third Reading. That may be a stage at which the Government wish to look at these things, and it might be a time for huge innovation. Now is not the time to take Second Reading points, which could be dealt with later in the whole proceedings.

Steve Baker Portrait Mr Baker
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I am grateful to the right hon. Gentleman, to whom I gave way because he has tabled relevant amendments about exit day. I hope that today he will feel able to support the Government’s set of related amendments.

Chris Leslie Portrait Mr Leslie
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Will the Minister give way?

Steve Baker Portrait Mr Baker
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I will not give way now, because I have been on my feet for 22 minutes, and there are, I think, 53 amendments and new clauses to deal with. I will give way to the hon. Gentleman a little later.

I turn to the long series of amendments that are designed, in one way or another, to oblige the Government to publish reports or assessments on specific areas or issues, some in advance of exit day. They are new clauses 31 to 33, 40 to 44, 46, 47, 71, 72, 82, 84 and 85, and amendments 85, 86 and 219 to 221. It is in no one’s interest for the Government to provide a running commentary on the wide range of analysis that they are doing until it is ready to support the parliamentary process in the established way. All the amendments and new clauses I have mentioned share one common flaw. Ministers have a specific responsibility, which Parliament has endorsed, not to release information that would expose our negotiating position. The amendments and new clauses risk doing precisely that. I commend the excellent speech made by my hon. Friend the Member for Gloucester (Richard Graham), who is in his place. I thought that his speech was an interesting reflection of his own experience.

The risks and difficulties are easily illustrated by looking at some of the specific reports that are called for. New clause 42 asks for a report on severance payments for employees of EU agencies, but that is not a matter for the UK Government. The right to severance pay is a matter for the EU agencies, although we hope and expect that they would honour any relevant commitments to their employees.

New clause 48 calls for a strategy for the certification of UK and EU medical devices by UK bodies so that the UK can maintain a close co-operative relationship with the EU in the field of medicines regulation. That is of course our aim: we intend such a strategy to form a key part of our deep and special future partnership with the EU.

New clause 71, tabled by my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), seeks to require a Minister to report before exit day on the Government’s progress in negotiating mutual market access for financial and professional services. I understand his motivations in wanting this information to be published. We are working to reach an agreement on the final deal in good time before we leave the EU in March 2019.

Anna Soubry Portrait Anna Soubry
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Will my hon. Friend give way?

Steve Baker Portrait Mr Baker
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I want to complete my argument, for the benefit of my hon. Friend the Member for Bromley and Chislehurst, who tabled this new clause.

We are seeking an economic partnership that will be both comprehensive and ambitious. It should be of greater scope and ambition than any previous agreement so that it covers sectors crucial to our linked economies, such as financial and professional services. We are confident that the UK and the EU can reach a positive deal on our future partnership as this will to be to the mutual benefit of both the UK and the EU. We will approach the negotiations in this constructive spirit.

I want to provide reassurance to my hon. Friend on his new clause 72, which seeks to ensure that any ministerial power to charge fees in respect of inspections of imported food and animal feed is exercised in a way that ensures full cost recovery for public authorities.

Anna Soubry Portrait Anna Soubry
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Will my hon. Friend give way?

Steve Baker Portrait Mr Baker
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Before I give way to my right hon. Friend, I want to respond on the new clause tabled by my hon. Friend the Member for Bromley and Chislehurst.

I would like to persuade my hon. Friend that his new clause 72 is not necessary. First, there is already sufficient statutory provision to ensure that the cost of mandatory veterinary checks on food and animal feed, on their importation, are fully recoverable. The arrangements for setting inspection fees for imported food and animal feed vary according to the type of inspection. All imports of products of animal origin must be inspected by a port health authority at a border inspection post. For high-risk products not of animal origin, these checks are carried out by a port health authority at a designated point of entry. Broadly speaking, these checks must be satisfactorily completed before a consignment is released for free circulation.

EC regulation No. 882/2004 on official controls, together with supporting domestic legislation—for England, it takes the form of the Official Feed and Food Controls (England) Regulations 2009—provides the legal basis for charges in respect of these inspections. The Bill will convert that EC regulation into UK legislation. The nature of the charges that the port health authority can make depends on a number of factors, including the nature of the food or animal feed being imported and its point of origin.

Robert Neill Portrait Robert Neill
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I am grateful to the Minister for going into such detail on the basis for charging. May I mention that the other purpose behind new clause 72, which is a probing amendment, is to remind the Government of the importance of seeking in our negotiating objectives—no more and no less than that—a continued form of mutual recognition, if at all possible, for checks on food and feed?

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Steve Baker Portrait Mr Baker
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I am grateful to my hon. Friend for that clarification. He will know that, under the WTO foundations of the world trading system, there are arrangements for the mutual recognition of sanitary and phytosanitary checks and other matters.

The second point I should make about my hon. Friend’s new clause 72 is that, in relation to any new inspections that may be required after the UK leaves the EU, the Government are considering what controls or surveillance will be required on imported food once we have left the EU. Where Ministers decide to introduce statutory inspection fees, Parliament should have the opportunity to consider the approach to be taken on a case-by-case basis. Where port authorities undertake additional checks on food, on its importation into the UK, for which there is not a statutory charge, decisions will continue to be taken on the basis of the need to balance costs between general and local taxation. We consider that the Government must remain free to set fees and charges in a manner that reflects these considerations. I hope that this provides my hon. Friend with sufficient reassurance.

Finally, on a separate issue, my hon. Friend asked earlier in our debates whether courts would be able to consider all material in relation to retained EU law when deciding such legislation’s meaning and effect. I am happy to confirm that this is the position under the Bill. The Government will place a letter in the Library of the House setting this out in more detail, and I am putting that on the record now to enable us to do so.

Robert Neill Portrait Robert Neill
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I am grateful for that assurance. There is just one other matter on which I hope my hon. Friend will be able to give me a like reassurance, on private contract matters.

Steve Baker Portrait Mr Baker
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I will. I am about halfway through my remarks. I will come to that.

Anna Soubry Portrait Anna Soubry
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I wonder whether the Minister could be quite clear at the Dispatch Box and give an undertaking on behalf of the Government that now we have voted—as we did last week—for amendment 7, the Government will not at any stage now bring forward any measure that in any way undermines the vote of this House on amendment 7, and that Parliament will have a meaningful vote, as we voted for last Wednesday.

Steve Baker Portrait Mr Baker
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I am grateful to my right hon. Friend. I admit, I thought she was going to ask me about the matters before me. That is a matter to be considered on Report, were we to return to it. [Hon. Members: “Ah!”] Opposition Members were shouting me down there for a moment. Were we to return to it, it would be a matter for Report, not for today. The Government’s policy is as we set out in the written ministerial statement, and of course we are a Government—[Interruption.] No, certainly not. We are a Government who of course obey the law. Parliament has voted and the law would currently be set out as on the face of the Bill.

Stephen Doughty Portrait Stephen Doughty
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Will the hon. Gentleman give way?

Steve Baker Portrait Mr Baker
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I am really not going to take more interventions on this matter, because as I—

Steve Baker Portrait Mr Baker
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No, I really am not giving way to the hon. Gentleman; I insist.

I turn now to amendment 102, which removes provisions that enable existing powers to amend retained direct EU legislation, and amendment 103, removing provisions that enable future powers by default to amend retained EU legislation. These amendments are linked to amendments that we have already debated on day 2 of the Committee, and I do not plan to repeat all those arguments.

Steve Baker Portrait Mr Baker
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I will make the argument on this point. We maintain that it is absolutely right and necessary for existing domestic powers granted by Parliament in other Acts to be able to operate on retained direct EU legislation, which will become domestic law. Fettering these powers would prevent important and necessary updates being made to our law, where that is within the scope and limitations of the powers and Parliament’s will. Similarly, it is important that future delegated powers created after exit day should be able to modify retained direct EU legislation, so far as applicable. This provides important clarity on the status of retained EU law and how it will interact with these powers. Further, where it is appropriate to do so, future powers can of course still be prohibited from amending retained direct EU legislation.

Ian Murray Portrait Ian Murray
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Will the Minister give way?

Steve Baker Portrait Mr Baker
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I will, if it is on that set of amendments.

Ian Murray Portrait Ian Murray
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It is very relevant to the amendments that the Minister is currently running through, because the Prime Minister, at the Liaison Committee, has refused to fully commit to abiding by amendment 7, agreed to by this House last week. I wonder whether the Minister would like to comment on that, because if he is rowing back on that commitment he is essentially undermining many of the amendments he is running through at the moment—the one from the right hon. Member for West Dorset (Sir Oliver Letwin) in particular.

Steve Baker Portrait Mr Baker
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What I would say to the hon. Gentleman, and I try to say this as gently as possible and in the spirit of Christmas, is that when I listened to my right hon. and learned Friend the Member for Beaconsfield talking about certain colleagues of a Eurosceptic persuasion, I hope he will not mind me reminding the House that he gave an articulation of—I think he used the word neurosis.

Dominic Grieve Portrait Mr Grieve
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indicated assent.

Steve Baker Portrait Mr Baker
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He says that he did. I think we need to recognise that as a Government we are trying to make this Bill work, and we have throughout the Bill’s passage worked closely with the House, listened closely to the concerns—

Anna Soubry Portrait Anna Soubry
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No you haven’t.

Steve Baker Portrait Mr Baker
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It is a matter of fact that we have stood at this Dispatch Box, we have accepted amendments and we have moved forward with the House on this Bill, accepting amendments and shaping the Bill to comply with the will of the House. I very much regret—

Ian Murray Portrait Ian Murray
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Will the hon. Gentleman give way?

Steve Baker Portrait Mr Baker
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No. I very much regret that on the occasion that is being referred to, we were not able to reach an accommodation, but the Bill is as it currently stands.

Steve Baker Portrait Mr Baker
- Hansard - -

I will not take any more interventions on this point, which is not pertaining to the clauses before us.

Anna Soubry Portrait Anna Soubry
- Hansard - - - Excerpts

We all know what’s happening

Steve Baker Portrait Mr Baker
- Hansard - -

I do take objection—[Interruption.] I do take objection, because what we are going to do is move forward with the Bill as it stands, with the set of concessions that we have included within it, and I would ask my right hon. Friend to accept the good faith of the Government.

Anna Soubry Portrait Anna Soubry
- Hansard - - - Excerpts

Will my hon. Friend give way?

Steve Baker Portrait Mr Baker
- Hansard - -

I am really not going to any more on this point.

Amendments 11 and 380 relate to the treatment of direct EU law for the purposes of the Human Rights Act 1998. I am grateful for the opportunity to discuss this point, which, as my right hon. and learned Friend the Member for Beaconsfield said, is related to his other concerns. The amendments concern the status of retained EU law, in this case specifically the status of retained direct EU legislation under clause 3 for the purpose of challenges under the Human Rights Act 1998.

Let me be clear from the outset that all legislation brought across will of course be susceptible to challenge under the HRA. Hon. Members will, however, understand that the remedies available under the Act differ for primary and subordinate legislation. It is therefore important that the Bill is absolutely clear on this point. Paragraph 19 of schedule 8 is clear. It sets out that this converted EU law is to be treated as primary legislation for the purposes of the 1998 Act, with the result that it will be open to the courts, if that legislation is challenged, to consider whether the legislation is compatible with rights under the European convention on human rights, and, if they conclude otherwise, to make a declaration of incompatibility under section 4 of the HRA.

The amendments, by contrast, would assign the status of subordinate legislation for the purposes of HRA challenges, meaning that a successful challenge could, as my right hon. and learned Friend the Member for Beaconsfield knows, result in a strike-down of the legislation. The Government considered this point very carefully before we introduced the Bill. We recognised the potential arguments that, for example, detailed and technical EU tertiary legislation is more akin to our domestic secondary legislation. We are also, of course, alive to the concerns that this law must be properly challengeable. We concluded on balance, however, that assigning primary status to converted law for these purposes was the better course for three principal reasons.

First, this law comes into our domestic statute book in a unique way, but fundamentally Parliament will have chosen to bring each and all of these pieces of legislation into our law by primary legislation, albeit indirectly through the Bill. Contrary to the position for subordinate legislation, there will have been no exercise of discretion by an individual Minister. In that sense, converted EU law is more akin to primary legislation.

Secondly, if the law could be struck down by the courts, we would risk undermining the certainty the Bill is seeking to provide. None of this legislation can be challenged in UK courts now and some of it has been on the statute book for decades. Opening it up to being struck down is an invitation to challenge law which has long been settled, and to refight the battles of the past in the hope that a different court will return a different verdict.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

Of the three points the Minister has made, the latter is without doubt the one that has the greatest force. It is worth bearing in mind that it highlights the fact of the supremacy of EU law, which is being preserved for the purposes of retained EU law. That, if I may say so, is a good reason why he should listen carefully to what I said about people being able to invoke general principles of EU law in order to challenge its operation. All these matters are interconnected.

Steve Baker Portrait Mr Baker
- Hansard - -

I am most grateful to my right hon. and learned Friend. I know he is going to take this matter up further with my hon. and learned Friend the Solicitor General. I did actually just make two points, but perhaps I structured them ambiguously.

The third point is that in the event of a strike-down there would be no existing power under which fresh regulations could be brought forward, so it would be necessary to bring forward a fresh Act of Parliament or to rely on the remedial order-making power within the HRA itself. I should say that the remedial order-making power within the HRA was not designed to be the default means by which incompatible legislation is remedied or to deal with the policy changes that could be required.

The remedial order-making power may only be used if there are compelling reasons for doing so and it is targeted at removing the identified incompatibility. If wider policy change were needed following a finding of incompatibility, a fresh Act of Parliament would be the only means of doing that and we could be left with damaging holes in the statute book unless and until such an Act was passed. That is why the Government concluded that converted EU law should have the status of primary legislation in relation to the HRA, and that is why the Government will not be able to accept the two amendments.

Bernard Jenkin Portrait Mr Jenkin
- Hansard - - - Excerpts

I wish to pick up on the important point raised by my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve). For the avoidance of doubt, will the Minister clarify that it is not the Government’s intention to set up retained EU law in UK statute in a manner that would encourage a UK court to strike down another primary statute? If that is the intention, may I suggest it might be something the Government will have to look at?

Steve Baker Portrait Mr Baker
- Hansard - -

My hon. and learned Friend the Solicitor General has just confirmed to me that we do not want that to happen. I am sure that that will be given further consideration, along with the issue of general principles that my right hon. and learned Friend the Member for Beaconsfield has raised.

Steve Baker Portrait Mr Baker
- Hansard - -

I will give way to the hon. Lady, and then I really will move on.

Heidi Alexander Portrait Heidi Alexander
- Hansard - - - Excerpts

I apologise for interrupting the Minister’s stream of thought and taking him back to his response to the right hon. Member for Broxtowe (Anna Soubry) and my hon. Friend the Member for Edinburgh South (Ian Murray), but can he rule out, from the Dispatch Box today, returning to amendment 7 on Report?

Steve Baker Portrait Mr Baker
- Hansard - -

I refer to the answer I gave earlier. At this point, I can tell the hon. Lady that I am not expecting to return to it, but we are reflecting on the implications of the amendment. We made a strong case for the powers at the Dispatch Box and are reflecting on it. I say to her, however, and to my right hon. and learned Friend the Member for Beaconsfield that we are not expecting at this point to return to it. [Interruption.] She asks what that means. We have been in close conversation with my right hon. and learned Friend, and I feel sure that those conversations will continue, but I say to the rest of the Committee that I am going to focus on the amendments before me.

Steve Baker Portrait Mr Baker
- Hansard - -

If it is on this point, I will not answer the hon. Gentleman.

Paul Farrelly Portrait Paul Farrelly
- Hansard - - - Excerpts

It is indeed on this point. Some of the Minister’s right hon. and hon.—and courageous—Friends from last week have, in good faith, signed amendment 400 this evening. Given that he is refusing to guarantee that the Government will stick to the letter and the spirit of amendment 7, they might feel that they are being led up the garden path.

Steve Baker Portrait Mr Baker
- Hansard - -

I did say that I would not answer the hon. Gentleman, but I cannot help saying that I do not remember him complimenting me when I have—occasionally—found myself in the other Lobby.

John Redwood Portrait John Redwood
- Hansard - - - Excerpts

Will the Minister confirm that Parliament is going to have its way? We will have a vote on any agreement, and it will then need primary legislation—the most intense scrutiny of all—to put it through. That, surely, is a major win for those who wanted that approach. I am quite happy with that. That is what amendment 7 leaves us with. Will he confirm that there will be full parliamentary scrutiny, debate and legislation on an agreement?

Steve Baker Portrait Mr Baker
- Hansard - -

Yes, I will confirm that of course there will be full parliamentary scrutiny. One of the things that is bringing me great joy, particularly at Christmas, is the extent of parliamentary unity on this point of parliamentary sovereignty. One reason so many of us campaigned to leave the EU is that we wanted our voters to have a choice over who governed the UK in as many matters as conceivable.

I do not wish to revisit the arguments around amendment 7. I wish rather to conclude my consideration of the issue before us.

Steve Baker Portrait Mr Baker
- Hansard - -

I am not going to let the hon. Gentleman come in on this point, which we have dealt with.

I emphasise again that our approach does not immunise converted law from HRA challenges. If an incompatibility were to be found, it places the matter in the hands of Parliament to resolve, without creating a legal vacuum in the interim. This approach strikes the right balance and recognises that supremacy of Parliament. I know that my right hon. and learned Friend has wider concerns regarding the rights of challenge after exit, including, in particular, where these are based on the general principles of EU law. I am happy to repeat the commitment made by my hon. and learned Friend the Solicitor General earlier that we are willing to look again at the technical detail of how certain legal challenges based on the general principles of EU law might work after exit. We will bring forward amendments on Report to address this, and we are happy to continue to discuss these concerns with him.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

That is a very sensible approach on these matters, and I am very grateful to the Minister and my hon. and learned Friend the Solicitor General for taking it forward. As for the other matter that has floated into our discussion, and which I have studiously avoided getting drawn into, I would simply recommend that, on the whole, kicking hornets’ nests is not a very good idea.

Steve Baker Portrait Mr Baker
- Hansard - -

It is ironic that my right hon. and learned Friend and I should be constituency neighbours, and, if I may say so—and as we put on the record on a previous day—friends. It is also ironic that our other Buckinghamshire neighbours have swapped one rebel commander for another. But I think I should move on: I have kicked enough hornets’ nests myself for one day.

--- Later in debate ---
Robert Neill Portrait Robert Neill
- Hansard - - - Excerpts

I am grateful to the Minister for that assurance, particularly in the light of recent press reports of attempts by the Spanish Government to exclude Gibraltar from the transition and end-state process. It is important for the Government to make that clear commitment, subject, of course, to the existence of the proper regulatory equivalents and standards. If the Minister will give me an undertaking that that will happen with the full involvement of Gibraltar’s Government, I think that those of us who supported the amendment will be satisfied.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my hon. Friend for his positive reaction to our amendment. The situation is as I have described it: our unshakeable objective is to secure the seamless continuation of existing market access to the UK, and to enhance it where possible.

Ian Paisley Portrait Ian Paisley
- Hansard - - - Excerpts

This is the one amendment that would probably have attracted support from the Democratic Unionists, but, because of the assurances the Minister has given—and, importantly, the assurances the Prime Minister gave even today at the Dispatch Box—we feel relieved for Gibraltar’s sake. Is the Minister essentially saying that the protections he is now affording to Gibraltar effectively mean it will not be treated in any way differently from any other part of the United Kingdom?

Steve Baker Portrait Mr Baker
- Hansard - -

The position is as I have set out, and I hope the hon. Gentleman will forgive me if, in all the circumstances, I stick to that position. I hope that he will understand the strength of our commitment from that. We will deliver on our assurances that Gibraltar businesses will enjoy continued access to the UK market, based on the Gibraltar authorities having already agreed to maintain full regulatory alignment with the UK.

Peter Grant Portrait Peter Grant
- Hansard - - - Excerpts

I have no doubt that the people and Government of Gibraltar will be grateful for the Minister’s assurances, but the wording of this amendment intends to make sure with 100% certainty that, even inadvertently, nothing in the Bill can damage the interests of the people of Gibraltar. Can the Minister tell us with absolute certainty that if this amendment is not added to the Bill, there is nothing in the Bill that will cause that damage? Assurances, objectives and promises are good, but can he say with absolute certainty that nothing in the Bill will ever damage or prejudice the interests of the people of Gibraltar?

Steve Baker Portrait Mr Baker
- Hansard - -

What I can say to the hon. Gentleman is that this Bill extends to Gibraltar only in the way I have set out: the Government’s policy is as I have indicated to him, and we remain steadfastly committed to the interests of Gibraltar.

I turn now to the REACH regulation, new clause 61. We will use the powers in this Bill to convert current EU chemicals law, including REACH, into domestic law. That will mean that the standards established by REACH will continue to apply in the UK. I believe that that renders new clause 61 unnecessary.

On custodial sentences and amendment 349, the scope to create criminal offences in the Bill is restricted so the powers cannot be used to create an offence punishable by a sentence of imprisonment for more than two years. It might, however, be necessary to create criminal offences in certain circumstances, for example offences related to functions that are to be transferred from EU bodies to UK bodies which would be lost without the ability to recreate offences relating to functions then held at a UK level. To lose the offence, and therefore the threat of a sanction, would remove what could be seen as important protections in our law, and for that reason we are not able to support the amendment.

I turn now to amendment 362 on the issue of ambulatory references. I hope the Committee will bear with me on the final, technical section of this speech. The amendment concerns paragraph 1 of schedule 8, which deals with the ambulatory references in our domestic law, as well as EU instruments and other documents in EU legislation that will be retained under clause 3. At present, the ambulatory cross-references update automatically when the EU instrument referred to is amended. After exit day, the Bill provides that such references will instead be read as references to the retained EU law version of the instrument, which, unless the contrary intention appears, will update when the retained instrument is modified by domestic law. This is necessary in order to prevent post-exit changes to EU law from flowing automatically into UK law. It would not be appropriate for the reference to continue to point to the EU version of the instrument after we have left the EU.

The approach set out in the Bill will be applied in relation to ambulatory references within any enactment, retained direct EU legislation, and any document relating to them. I understand that this last provision—the reference to documents and whether or not that includes contracts—has concerned my hon. Friend the Member for Bromley and Chislehurst. The Government are alive to concerns that we should not unduly disturb the operation of private contracts, or prevent parties to a contract from being able to give effect to their intentions. We are happy to explore this issue further with my hon. Friend and interested parties, to ensure that we achieve the appropriate balance between clarity and flexibility.

Robert Neill Portrait Robert Neill
- Hansard - - - Excerpts

I am grateful to my hon. Friend and my hon. and learned Friend the Solicitor General for their frank and helpful response in this matter. This issue was raised by the City of London Corporation and the International Regulatory Strategy Group. I thank the Minister for his assurance that he will continue to work with them, and look forward to that. I am satisfied, for these purposes, that the issue is being addressed.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my hon. Friend. My hon. and learned Friend the Solicitor General and I look forward to working with him on this issue.

In conclusion, Sir David—

John Baron Portrait Mr Baron
- Hansard - - - Excerpts

Will the Minister give way?

Steve Baker Portrait Mr Baker
- Hansard - -

I will give way one last time.

John Baron Portrait Mr Baron
- Hansard - - - Excerpts

May I briefly take the Minister back to amendments 381 and 400? I thank him for his kind words about amendment 400, and for his work on the Bill. He will know that I did not put my name to amendment 381, but I will support amendment 400 so long as that power will be used only in extremis and for the shortest possible time. We have had an assurance on that from the Prime Minister at the Dispatch Box today, and I know that those on the Government Front Bench have taken that on board, but if there is any dissension on this, it would be nice to know about it now.

Steve Baker Portrait Mr Baker
- Hansard - -

Perhaps my hon. Friend was not in the Chamber when I gave my assurance on this earlier. I am happy to repeat it. I can assure the House that we would use this power only in exceptional circumstances to extend the deadline for the shortest period possible, and that we cannot envisage the date being brought forward. I think that my right hon. Friend the Prime Minister explained that earlier.

Ian Murray Portrait Ian Murray
- Hansard - - - Excerpts

Will the Minister give way?

Steve Baker Portrait Mr Baker
- Hansard - -

I did say that that was the last time I would give way, and I think it is now time for me to—[Interruption.] Yes, it is Christmas, and it is in the spirit of seasonal brevity that I would like to turn to the issue of thanks.

I should first like to thank the Committee for its diligent and well-informed scrutiny of this, the first Bill that I have piloted through Parliament. I am an engineer, not a pilot, however, so perhaps I could be said to have guided it through Parliament. It has been my pleasure to do so. I should like to thank you, Sir David, for your chairmanship, and I thank Dame Rosie, Mrs Laing, the other Sir David, Mr Hanson and Mr Streeter for theirs. It has been a pleasure to serve under all your chairmanships. I should also like to thank the Bill ministerial team, whose advice, support and guidance have been absolutely indispensable.

I should like to thank the Solicitor General, my hon. and learned Friend the Member for South Swindon (Robert Buckland), the Minister of State, Ministry of Justice, my hon. Friend the Member for Esher and Walton (Dominic Raab), the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Kingswood (Chris Skidmore) and of course the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker). It would be wrong of me to omit the Lord Commissioner of Her Majesty's Treasury, my hon. Friend the Member for Sherwood (Mark Spencer), who unfortunately is not in his place. His occasional guidance to the entire team has been invaluable, and has always been followed.

Finally, and most importantly, I should like to thank all the officials in the Department for Exiting the European Union and beyond who have so diligently risen to the enormous task of dealing with the scrutiny of the Bill. They have guided and assisted Ministers in the preparation of their remarks and they have responded to every query, from the House and from Ministers. We could not possibly have asked for more from them, and they could not have responded more professionally or more energetically. We can be extremely proud of all of the officials who have supported the Bill, as we wish them all a merry Christmas.

Baroness Hoey Portrait Kate Hoey (Vauxhall) (Lab)
- Hansard - - - Excerpts

It is a pleasure to see you in the Chair, Sir David, and it is also a pleasure to follow the Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe (Mr Baker). I pay tribute to his calmness and tolerance in taking a very difficult Bill through to this stage. I was around when the Maastricht Bill was going through Parliament, and the way in which he has handled this one is a real tribute to him.

I do not always agree with the right hon. and learned Member for Beaconsfield (Mr Grieve), but I agreed with him when he said that the Bill was about process. I am afraid that, perhaps because we have had eight days in Committee, we have widened our debate into areas that should not necessarily have been discussed today. We have rehashed quite a lot of the debate on the referendum. For me, this is a simple Bill about repealing the European Communities Act 1972.

I welcome the fact that there is now general agreement across the House about the date. I am pleased that it will be set out in the Bill because unlike a lot of Members here, but like my hon. Friend the Member for Blyth Valley (Mr Campbell), I do not really trust the EU. I therefore always worry that if we are not absolutely clear about what we are doing, the EU will manage to move things, because it would like to delay the process and punish us as much as possible for taking the brave decision to leave. When we look at what we are discussing, we are simply asking to leave the EU. The British people originally voted for a formal economic agreement, but for 40 years we have seen entanglement and legal procedures getting into our country, and we are now having to go through all this to leave.

--- Later in debate ---
Anna Soubry Portrait Anna Soubry
- Hansard - - - Excerpts

Exactly, of course they didn’t. They did not talk about the single market. They did talk about immigration, however, and they thought they pretty much did not like it, even though in Kimberley there have probably been about four immigrants over the course of about 200 years.

We have had that part of the debate, but there is a grave danger in looking at the result of the referendum and saying, “The British people have definitely said they don’t want the single market and the customs union and all the rest of it”. We are leaving the EU, so I have voted to trigger article 50—I have taken that big step against everything I have ever believed in, and I accept we are leaving the EU—but I am not going to stay silent, and I am not going to stop making the case for us to do the right thing as we leave. I gently say to those who stand up and bang on about the devilment of the single market and the customs union that that is gravely insulting to British business.

What have we seen in this peculiar debate? It has been peculiar. I endorse everything my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) and the hon. Member for Nottingham East (Mr Leslie) have said; it must be a Nottingham thing that there is this agreement between the three of us about the merits of the customs union and the arguments made about the Florence speech and why it should be on the face of the Bill.

I also observe that the Government have not really conceded very much at all. They have accepted that there was a real problem with the Henry VIII powers and they have accepted amendments that they pretty much drafted themselves, and they now accept the amendment of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin), but we must be honest about that: it was an amendment rightly put forward by him, but to solve a problem of the Government’s creation, because they lost the vote on amendment 7. It might be a very good fudge, but we must not make any mistake about it: if it had not come as an idea from the Government, it would not be before us as an amendment—I say that with no disrespect to my right hon. Friend.

The Government have not actually conceded anything at all. They have gone away and said some warm words, but I am now worried and concerned. Last week, 11 very honourable and brave people on this side of the House had to face what some of my colleagues think is just a bit of intimidation. We have seen national newspapers hurling abuse, and putting up photographs almost like “Wanted” posters. In the face of all that and of a lot of strong-arm tactics—I will not go into that here, but those responsible for them know exactly what was going on behind the scenes; let us not pretend otherwise—they voted, in some cases for the first time ever, and in others for the first time in more than 20 years of honourable and loyal service to their party, in accordance with their conscience when they voted for amendment 7.

Today, however, our Prime Minister appears to be rowing back on that, and the Minister is unable to give us an unequivocal statement at the Dispatch Box that the Government will honour amendment 7. Let me make it very clear that if there is any attempt by the Government to go back on amendment 7, the rebellion will be even greater and have even bigger consequences.

Steve Baker Portrait Mr Baker
- Hansard - -

I am happy to give my right hon. Friend an early Christmas present. I can give her the following assurance on behalf of the Government. The Government have accepted amendment 7. Our written ministerial statement on procedures for the approval and implementation of the EU exit agreement stands. There will be the following meaningful votes in accordance with that statement: on the withdrawal treaty, and on the terms of the future agreement. There will also be a withdrawal and implementation Bill, which the House will consider in detail, and of course all legislation is amendable.

Anna Soubry Portrait Anna Soubry
- Hansard - - - Excerpts

I think that that is the unequivocal statement I am looking for. If it is, I am extremely grateful to the Minister for clearing that up. It is indeed a great Christmas present.

It is obvious that the two main parties in this place remain deeply divided, just as the country does. The irony of the situation will not be lost on future generations as they read Hansard. We have a considerable number of hon. and right hon. Members sitting on the Opposition Benches who completely agree with a considerable number of hon. and right hon. Members sitting on these Benches, yet we are prevented from building consensus and finding agreement because of the divisions within the two parties and, it has to be said, some intransigence on our two Front Benches. It is not for me to comment on the state of the Labour party, however; I will leave others to do that.

My right hon. and learned Friend the Member for Rushcliffe has already identified the fact that, 18 months on, we still do not know what the Government see as their endgame. Our own Cabinet remains totally divided on this great issue—the greatest issue that we have had to wrestle with for decades. I say to my honourable and dear colleagues that there are some on these Benches who are entrenched in their ideological view about the European Union and will not move from it. They are a small group—they are the minority—but I feel as though they are running our country, and that cannot be right. Then there is another group, a big wide group of Conservative colleagues. Some of them are reluctant remainers, some are leavers-lite, and as they hear our debates and listen to the businesses that come to speak to them in their constituency offices, they are feeling uneasy and queasy. I do not say that they have to agree with me—of course they do not—but I asked them to listen to the arguments that are being advanced by those of us who speak on behalf of our constituents, notably businesses, about a deal.

We are not going to get a bespoke deal from the European Union—well, not unless we pay shed loads of money for access to this or that market—but there is something available to us. It is EFTA. It is the customs union. It is sitting there as a package. We can take it and seize it, and British business would be delighted if we did so. And then it would be done. The British people would say, “Thank God! They’ve got on and delivered Brexit”, and all would be well. We need to get on with it, so that we can then address the great domestic issues. I beg my hon. Friends to google EFTA and the customs union over the Christmas period. I urge them to understand them and to look at what Norway gets. Norway is able to determine its own agricultural and fisheries policies, for example. My hon. Friends need to know and understand these things. Then we need to come back in the new year and make a fresh start on forming that consensus that our constituents are dying to hear about, because they are fed up to the back teeth with what is going on.

General Affairs Council: December 2017

Steve Baker Excerpts
Tuesday 19th December 2017

(6 years, 4 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

Lord Callanan, Minister of State for Exiting the European Union, has made the following statement:

I represented the UK at the General Affairs Council (GAC) meeting in Brussels on 12 December. The main items on the agenda were: preparations for the December European Council on 14 and 15 December; a follow-up to the October European Council; legislative programming, covering the joint declaration on legislative priorities for 2018-19; and the European semester, focusing on the annual growth survey.

A provisional report of the meeting and the conclusions adopted can be found on the Council of the European Union’s website at:

http://www.consilium.europa.eu/en/meetings/gac/2017/12/12/

Preparation of the European Council, 14 to 15 December 2017

The presidency introduced the agenda for the December European Council, which included: defence; social, culture and education; migration; and external relations. I intervened to welcome the draft December conclusions as short and well balanced.

On the defence agenda item, the Council were informed that NATO Secretary-General Stoltenberg would attend the DEC to discuss EU-NATO co-operation. I intervened to emphasise the importance of EU-NATO co-operation. I also welcomed swift progress on the permanent structured co-operation (PESCO) and the attention given to the European defence industrial development programme (EDIDP).

Ministers exchanged views on the conclusions for the social, education and culture agenda item. I stressed the importance of subsidiarity in this area and noted that economic strength and the creation of jobs are the best way to deliver social protection.

Under the migration agenda item, Ministers discussed the common European asylum system (CEAS).

October European Council follow-up

Commission Vice-President Timmermans updated Ministers on the successful replenishment of the EU Africa trust fund (EUTF), which had exceeded the €110 million target set by leaders in October. Vice-President Timmermans also updated that cuts to Turkey’s pre-accession funding were a reflection of political developments in the country.

Legislative programming—joint declaration on interinstitutional programming

The Council approved the joint declaration on the EU’s legislative priorities for 2018-19. The wpriorities, which include views on annual interinstitutional programming, are due to be signed by the Presidents of the European Council, Commission and Parliament.

European semester 2018—annual growth survey

The Commission introduced the annual growth survey, which set out its priorities for action at national and EU-level over the next 12 months to support economic growth and employment.

[HCWS370]

Oral Answers to Questions

Steve Baker Excerpts
Thursday 14th December 2017

(6 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Robert Courts Portrait Robert Courts (Witney) (Con)
- Hansard - - - Excerpts

3. What recent discussions he has had with the Secretary of State for Environment, Food and Rural Affairs on support for farmers after the UK leaves the EU.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

We have been working closely with the Secretary of State for Environment, Food, and Rural Affairs on support for farmers, and the Government will provide the same cash total in funds for farmer support until the end of the Parliament. We continue to work closely with a range of stakeholders across the farming industry and beyond, as well as with the devolved Assemblies.

Wendy Morton Portrait Wendy Morton
- Hansard - - - Excerpts

I recently met local farmers in my constituency and representatives from the National Farmers Union, and understandably, Brexit was one of the things we discussed. Will my hon. Friend assure farmers across the west midlands and the rest of the UK that he has given consideration to the supply of adequate seasonal labour on which many farmers rely?

Steve Baker Portrait Mr Baker
- Hansard - -

Yes. The Government have commissioned the Migration Advisory Committee to gather evidence on patterns of EU migration and the role of migration in the wider economy, ahead of our exit from the EU. The MAC’s call for evidence on EEA workers in the UK labour market closed on 27 October, but it will continue to engage with organisations to gather further evidence. The Government are clear that the UK is open for business.

Robert Courts Portrait Robert Courts
- Hansard - - - Excerpts

On a similar note to the question from my hon. Friend the Member for Aldridge-Brownhills (Wendy Morton), west Oxfordshire has a successful agricultural economy, particularly, for example, in poultry farming. Businesses in my constituency are looking forward to the opportunities that will open up as we leave the European Union, but what assurances can the Minister give to those who have concerns about labour supply that either they will have access to the workers they need from the European Union, or that there will be training for British equivalents?

Steve Baker Portrait Mr Baker
- Hansard - -

At every step of these negotiations, we will work to ensure the best possible outcome for the British people, including our farming community that plays such a vital role in constituencies such as ours. No decisions have yet been made on our future immigration system. We are considering carefully a range of options and taking into account the needs of different sectors of the economy, including agriculture.

Mary Creagh Portrait Mary Creagh (Wakefield) (Lab)
- Hansard - - - Excerpts

Farmers in Wakefield, Yorkshire, and across the country face a triple whammy from Brexit: the loss of common agricultural policy subsidies, and changes to the subsidy regime after 2021; tariff and non-tariff barriers; and potentially a flood of cheap imports after any new trade deal. What steps is the Minister taking to mitigate those risks?

Steve Baker Portrait Mr Baker
- Hansard - -

As I said in my original answer, we are protecting total cash payments to farmers throughout this Parliament, and that is the longest guarantee right across the European Union. I do not accept the premise of the hon. Lady’s question, and we will continue to support farmers.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - - - Excerpts

With special reference to global exports, will the Minister say what discussions have been held and how the Department has sought to establish trade rights for farming exporters in my constituency, of which there are many?

Steve Baker Portrait Mr Baker
- Hansard - -

The UK farming sector enjoys a reputation for quality that has been built on high animal welfare standards, strong environmental protections, and the dedication of farmers and growers across the United Kingdom. Based on that reputation, we hope that we will flourish in the world market.

Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
- Hansard - - - Excerpts

There has been a lot of focus on the uncertainty in sectors such as banking that have contingency plans for relocation. For many farmers, however, the decision is not one of relocation; it is about whether they stay in the industry at all, and we need good farmers to stay in the business. I urge my hon. Friend to work with colleagues at the Department for Environment, Food and Rural Affairs, and the farming unions, to develop a strong post-Brexit plan for agriculture.

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Steve Baker Portrait Mr Baker
- Hansard - -

As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) knows, leaving the European Union means leaving the common agricultural policy. We believe that this is an opportunity to design a new agri-environment system to the benefit of our whole country.

Ben Lake Portrait Ben Lake (Ceredigion) (PC)
- Hansard - - - Excerpts

The red meat sector accounts for 45% of Welsh agricultural production by value, and the EU is its nearest and biggest market. Evidence from the Welsh meat marketing board, Hybu Cig Cymru, suggests that under World Trade Organisation rules, tariffs of up to 84% could be levied on cattle carcases, 46% on lamb carcases, and 61% on cuts of lamb. Does the Minister recognise that securing tariff-free access to the EU market is vital for the viability of Wales’s livestock-dependent agriculture sector?

Steve Baker Portrait Mr Baker
- Hansard - -

We recognise that securing tariff-free access is crucial, and it is our policy to seek to do so.

Kwasi Kwarteng Portrait Kwasi Kwarteng (Spelthorne) (Con)
- Hansard - - - Excerpts

2. What assessment he has made of the potential merits of an implementation period after the UK leaves the EU.

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Paul Williams Portrait Dr Paul Williams (Stockton South) (Lab)
- Hansard - - - Excerpts

6. What recent discussions he has had with the Secretary of State for Health on the effect on the NHS workforce of the UK leaving the EU.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

We continue to work closely with the Department of Health. Reports that large numbers of EU nationals are leaving the NHS are untrue. The latest figures from NHS Digital show that there were over 3,000 more EU nationals, including 470 more doctors, working in the NHS in June 2017 than there were before the referendum result. That is an increase of 5.4%. The overall share of the NHS workforce who are EU nationals also increased over that time, from 5% to 5.2%. I believe this proves that EU nationals recognise that we value the enormous contribution they make to the NHS, and I hope the agreement on citizens’ rights reached on 8 December gives them even more certainty.

Paul Williams Portrait Dr Williams
- Hansard - - - Excerpts

I refer Members to my declared interest. Some 1,700 NHS doctors from European economic area countries were recently surveyed by the British Medical Association, and half were considering leaving and one in five have made firm plans to go, many after 20 years. Whatever Ministers say, the message is not reaching our doctors and nurses. What more will the Minister do to convince them to stay?

Steve Baker Portrait Mr Baker
- Hansard - -

Happily, I am married to a doctor and I read that BMA article, which is available online. I recommend to anyone that they read the entire article to put everything into context. Of course, I respect the fact that the hon. Gentleman is a doctor, but I say to all Members that it is incumbent on us all to celebrate the agreement we have reached on citizens’ rights and for every one of us, without exception, to send out the message that we value people from wherever they may come.

Rebecca Pow Portrait Rebecca Pow (Taunton Deane) (Con)
- Hansard - - - Excerpts

Somerset Care in my constituency employs 172 European Union workers, who are vital to the care provided for those who really need it. In fact, the whole healthcare sector in the south-west already struggles to get enough staff. Will the Minister reiterate to those staff the assurance that they will be able to stay? What they really want to know is how they will stay and what they will do.

Steve Baker Portrait Mr Baker
- Hansard - -

As my hon. Friend will know, we have every intention of carrying forward the agreement we have reached to a successful conclusion, and that agreement includes provisions to ensure that the process of registering for settled status is a smooth one.

Jo Stevens Portrait Jo Stevens (Cardiff Central) (Lab)
- Hansard - - - Excerpts

7. What assessment he has made of the effect of the UK leaving the EU on (a) UK participation rates in Horizon 2020 and (b) university admissions.

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Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
- Hansard - - - Excerpts

18. What steps he is taking to ensure that rights, entitlements, protections and standards in EU law are maintained in the UK after it leaves the EU.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

The UK has a proud record of protecting rights. The EU (Withdrawal) Bill aims to maximise certainty for individuals and businesses about their legal rights and obligations as we leave the EU, to provide the basis for a smooth and orderly exit. The Bill will ensure that the laws and rules that we have now will so far as possible continue to apply as they did before exit.

Chris Elmore Portrait Chris Elmore
- Hansard - - - Excerpts

The Prime Minister has said that full regulatory alignment with the Republic of Ireland is part of the deal that she negotiated last week. Can the Minister give an absolute guarantee to the electrical engineers in my constituency that product safety and workplace practices will be guaranteed after we have left the EU?

Steve Baker Portrait Mr Baker
- Hansard - -

There are a great range of rights for which we do not rely on the European Union to meet the standards that we do. However, trade deals are always founded on WTO principles, and the WTO includes a wide range of measures in relation to technical barriers to trade, sanitary and phytosanitary protections, and other matters.

Afzal Khan Portrait Afzal Khan
- Hansard - - - Excerpts

The charter of fundamental rights has been a valuable and accessible instrument in protecting human rights. Does the Minister agree with Liberty, Amnesty International and the Public Law Project that

“Banishing the Charter from the UK because we have other legal sources of rights would be like banning hammers because spanners can also strike nails”?

Steve Baker Portrait Mr Baker
- Hansard - -

Not incorporating the charter should not affect the substantive rights that individuals already benefit from in the UK, as the charter was never the source of those rights. Those EU fundamental rights are, in any case, applicable only within the scope of EU law. The Government have now published their analysis of the charter, which clearly sets out how each substantive right that was reaffirmed in the charter will be reflected in the domestic law of the UK.

Daniel Zeichner Portrait Daniel Zeichner (Cambridge) (Lab)
- Hansard - - - Excerpts

13. What progress the Government have made on negotiating with the EU continuing co-operation on the regulation of medicines after the UK leaves the EU.

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Mims Davies Portrait Mims Davies (Eastleigh) (Con)
- Hansard - - - Excerpts

T4. Recreational boating is a vital part of my constituency’s leisure facilities around Hamble and Netley. Will the Minister outline what assessment his Department has made of the impact of leaving the EU on recreational boating on the Solent?

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

As a former fast catamaran sailor in the seas in the area that my hon. Friend refers to, I am happy to say that the Government’s maritime and ports sectoral report sets out a description of the sector, the current EU regulatory regime, existing frameworks for how trade is facilitated between countries in the sector, and sector views. This report has been available to Members of both Houses to read in a secure reading room. The UK will remain a great maritime nation.

Matthew Pennycook Portrait Matthew Pennycook (Greenwich and Woolwich) (Lab)
- Hansard - - - Excerpts

The House will be aware that yesterday the European Parliament had a vote on a resolution to endorse the agreement reached last week. Can the Secretary of State tell us why, unlike Labour Members of the European Parliament, Conservative MEPs were whipped to abstain and not to vote in support of that joint report?

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Virendra Sharma Portrait Mr Virendra Sharma (Ealing, Southall) (Lab)
- Hansard - - - Excerpts

T2. What plans does the Minister have to write the tobacco products directive into British law? What discussions has he had with his European counterparts about the TPD?

Steve Baker Portrait Mr Baker
- Hansard - -

As the hon. Gentleman will know, the purpose of the European Union (Withdrawal) Bill is to bring EU law into UK law in the state it is in at our point of exit. Beyond that, in the implementation period, things are a matter for negotiations.

Sarah Wollaston Portrait Dr Sarah Wollaston (Totnes) (Con)
- Hansard - - - Excerpts

I recently booked an appointment in the reading room. I thought that it would be like an inner circle of hell, and that I would be trapped in there for days reading the sectoral analysis. Indeed, I was there with the hon. Member for Wakefield (Mary Creagh). In fact, there were only nine pages on health and social care, and the documents relevant to my Select Committee took me less than an hour to read in their entirety. I believe that in the interests of transparency, these very straightforward documents should be in the public domain. Will the Secretary of State publish them?

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Diana Johnson Portrait Diana Johnson (Kingston upon Hull North) (Lab)
- Hansard - - - Excerpts

T5. The Secretary of State knows very well the importance of the renewables industry to the Humber, and he knows how important it will be for the industry to be able to trade competitively when we leave the EU. Will he support new clause 83, which calls for a full impact assessment on that industry?

Steve Baker Portrait Mr Baker
- Hansard - -

The UK will continue to play an active role internationally, as demonstrated by our ratification of the Paris agreement on climate change. We will continue to uphold our obligations under international environmental treaties such as the Montreal and Gothenburg protocols, the Stockholm convention, the convention on biological diversity and the convention on international trade in endangered species. The new clause itself we will return to in debate.

Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
- Hansard - - - Excerpts

We are leaving the European Union, the common agricultural policy and the common fisheries policy. As we do so, will my right hon. Friend work closely with the Department for Environment, Food and Rural Affairs to ensure that we support not only the farmers and food producers in our agricultural system, but our environment?

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Nigel Evans Portrait Mr Nigel Evans (Ribble Valley) (Con)
- Hansard - - - Excerpts

China is a massive market. Does the Secretary of State agree that the open skies policy that was recently agreed with China, increasing the number of flights by 50% to 150 a week, will be a great boost to business throughout this country when it comes to doing trade deals with China?

Steve Baker Portrait Mr Baker
- Hansard - -

My hon. Friend is absolutely right, and he reminds me that according to the European Commission, 90% of world growth will come from outside the EU by 2020. I think he points to the importance of the UK turning outwards to be a global trading nation and enjoying productive, prosperous relationships with the whole world.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
- Hansard - - - Excerpts

T7. The Secretary of State claims that the phase 1 agreement gives security to EU nationals, but that is constantly undermined by the reference to a no deal Brexit, which would rip that up. Does he not accept that there is a need to give legal standing to EU citizens’ rights now, rather than putting EU nationals through another year of anxiety?

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Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
- Hansard - - - Excerpts

T8. Does the Secretary of State agree that the worst place for someone to be in any negotiation is when they have fixed and declared their own deadline? In tabling amendment 381, the Government have effectively put a gun to their own head.

Steve Baker Portrait Mr Baker
- Hansard - -

The House voted overwhelmingly for the Act of Parliament that triggered article 50. The terms of article 50 were well known to this House, and they involve a fixed duration of two years.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
- Hansard - - - Excerpts

Will the Secretary of State tell us what recent discussions he has had with representatives of the UK financial sector about the effect on that sector of the UK’s leaving the single market? There are increasing reports of jobs being transferred to, or often in, other EU countries.

European Union (Withdrawal) Bill

Steve Baker Excerpts
Oliver Letwin Portrait Sir Oliver Letwin
- Hansard - - - Excerpts

Except of course it is, because if the amendment is accepted, as the Government intend, the committee will be empowered to make a recommendation to have something debated by the affirmative procedure in the House should such an eventuality arise. In those circumstances, if we have an assurance from the Dispatch Box that something will be so debated, the hon. Gentleman and I will be able to join forces to prevent such a thing from happening. That is a genuine lock, and this debate depends on whether we want to engage in party political games or whether we want a serious approach to ensuring ministerial accountability. Amendment 397 is serious, and my hon. Friends and I are keen to ensure that its changes are made. I note that my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) has also put his name to the amendment, which gives me great comfort that it is a serious effort to cure the problem.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

On the point made by the hon. Member for Rhondda (Chris Bryant) about amending the Act, which I will refer to in my own speech, I just want to draw the Committee’s attention to paragraph 6 (2)(g) of Schedule 7. For us to amend the Act, any change would have to relate to the withdrawal agreement and its implementation and would be subject to a vote in both Houses.

Oliver Letwin Portrait Sir Oliver Letwin
- Hansard - - - Excerpts

That is indeed true. I suppose that Opposition Members would tend to argue that only the courts could enforce that, which is an oddity with the principle of comity, but I think we are dancing on the heads of pins here. I am confident that the Government do not intend to use that power to get rid of the constraints within the Bill. I am equally confident that the serious issue here is whether significant changes are proposed by the negative procedure and, I repeat, the Procedure Committee amendment seems to handle that serious issue, which is in contrast to the highly hypothetical considerations that have already been put before the Committee.

Amendments 62 and 63 were, in a different form, the subject of some serious discussions earlier in Committee. They relate to how we bring the important environmental principles in the treaty on the functioning of the European Union into English law at the time of withdrawal and to how we replace the useful role that the Commission has played in being an independent enforcement agency for environmental law that is governed by those principles in its procedures and substantive actions.

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I want to give another example that is minor but of some significance. At the moment, European regulations provide for people to get compensation if their flights are delayed. That includes short delays, whereas in most parts of the world insurance is provided only if a flight is delayed for more than 24 hours. Let us suppose that after exit day the Government were lobbied by airlines, airports or whoever to say that they wanted to restrict the scope of that legislation because it was not compatible with policy in this country. It would then be very simple for the Government to make a qualification of 24 hours’ delay before compensation could be paid through any scheme that they brought in. That is a simple thing that does not sound dramatic, but it will affect thousands of people every year out of the many millions who make these journeys.
Steve Baker Portrait Mr Baker
- Hansard - -

rose

Tommy Sheppard Portrait Tommy Sheppard
- Hansard - - - Excerpts

I will give way in a moment, but I want to give a third example, which the Minister may also wish to talk about, regarding the common agricultural policy. At the moment, Scottish farmers are waiting on £160 million of refund payments under the CAP because of the way that it was changed in recent years. The way in which those payments are to be distributed is currently the subject of EU regulations, but what if the Government felt that that was somehow unfair and they wanted to change it? Then, without reference to primary legislation and or to Parliament, they could do so, and the material amount of money that farmers would get would be different from what they expect now. That is just a simple illustration of how these policies could change. I now happily give way to the Minister if he still wants to intervene.

Steve Baker Portrait Mr Baker
- Hansard - -

Could the hon. Gentleman revisit each of the examples he has given and explain why he thinks that they would be deficiencies arising from our withdrawal from the EU, because having listened carefully to him, I do not think that, as my hon. and learned Friend the Solicitor General is saying, any of them could be classed as deficiencies arising from our withdrawal?

Tommy Sheppard Portrait Tommy Sheppard
- Hansard - - - Excerpts

I do not think that they are deficiencies—that is not my point. My point is that a Minister or a future Minister might regard them as deficiencies, and therefore might change the law in this way.

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Mary Creagh Portrait Mary Creagh
- Hansard - - - Excerpts

My hon. Friend raises an excellent point, which has also been raised by the European Chemicals Agency. Those registrations, which will have cost our businesses £250 million, will fall on exit day. I know that that particular agency does allow third countries to participate, but when I tabled a parliamentary question to various Departments about the work they had done to prepare to duplicate the work of those regulatory agencies, I got a series of flannel-type replies that essentially said, “We don’t know how much it is going to cost, we don’t know what the system is going to be and we haven’t really started the work.” That is simply not good enough. Businesses and citizens deserve certainty. We are going to need between 800 and 1,000 statutory instruments before exit day to correct retained law. In a letter to the Environment, Food and Rural Affairs Committee in September, the Environment Secretary said that there were 850 pieces of legislation relating to his Department that would no longer work after exit day unless they were corrected. That is an absolutely huge body of law.

Clause 7, as we have heard, gives Ministers powers to make regulations that they believe are appropriate—again, I dispute what “appropriate” might be—to

“prevent, remedy or mitigate…any failure of EU retained law to operate effectively”—

again, how do we know what the full scope of this clause will cover? This is a huge amount of law—

“or…any other deficiency in retained EU law”

where this arises from exit. The Bill’s explanatory notes contain a worrying and rather brazen example of what this means. They use the example of the UK having to obtain an opinion from the EU Commission, stating:

“In this instance the power to correct the law would allow the Government to amend UK domestic legislation to either replace the reference to the Commission with a UK body”—

should the Government decide to have one—

“or remove this requirement completely.”

Once we start to see the removal of reporting and enforcement requirements, we get to the heart of the Bill, which is that Brexit is a deregulators’ charter. This is about taking rights away and about ensuring that environmental and social rights are lost to our citizens. I do not want to see Ministers making those sweeping changes with no scrutiny in this place.

In part 1 of schedule 7, paragraph 3(2) waives the affirmative procedure for regulations where the Minister is of the opinion that

“by reason of urgency, it is necessary to make the regulations without a draft being so laid and approved.”

That basically says that the Government will not consult this House if the matter is urgent. They have said that they will accept the amendments tabled by the Procedure Committee Chair, the hon. Member for Broxbourne (Mr Walker), but those provisions could be waived if a Minister was of the opinion that the regulations were urgent. The Government want to pass 800 to 1,000 statutory instruments, 850 of which are in the environment sphere. Can anyone tell me which of those regulations will not be urgent, given that they need to be passed before exit day?

Steve Baker Portrait Mr Baker
- Hansard - -

May I reassure the hon. Lady that it is the made affirmative procedure that is available for urgent instruments, so the instrument would have to be laid before both Houses.

Mary Creagh Portrait Mary Creagh
- Hansard - - - Excerpts

But that would still be the negative procedure—

Steve Baker Portrait Mr Baker
- Hansard - -

No, it is set out in the schedule. It is the made affirmative procedure, which means that once the instrument has been made, it must be laid for a resolution of both Houses.

Mary Creagh Portrait Mary Creagh
- Hansard - - - Excerpts

I thank the Minister for that clarification.

What could possibly be watered down? The Environmental Audit Committee asked the Transport Secretary for a guarantee that air quality standards would not be watered down after Brexit, but he refused to give us that guarantee, saying that he found it

“hard to believe that any Minister is going to stand before this House and argue for a reduction in air quality standards.”

He is right. No Minister will have to stand before this House and argue for that, because the Bill does away with that requirement. We saw the Secretary of State for Exiting the European Union’s mask slip once before during his statement to this House on the White Paper, when he said:

“This is about reversing—well, not reversing but amending—and dealing with 40 years’ accumulated policy and law.”—[Official Report, 2 February 2017; Vol. 620, c. 1220.]

That was a Freudian slip that I return to time and again. We have also seen that from the Environment Secretary. Paeans have been heaped on his head, but in April, between his visiting Donald Trump in January and his rehabilitation to the Cabinet, he railed against the habitats directive, which he now somehow wants to protect from himself. He talked about homes in his constituency being governed by the habitats directive and how onerous it was for developers to have to offset their projects with green spaces. There is obviously more joy in heaven over one sinner who repents, but he was a deregulator before his damascene conversion. He is now deeply penitent, spending his day listening to the experts, and has since acknowledged that the environment needs to be protected from

“the unscrupulous, unprincipled, or careless”.

I wonder which of his colleagues he had in mind and who may yet succeed him at DEFRA.

How might Ministers go about watering down EU standards? The 2008 classification, labelling and packaging regulation or CLP regulation—CLP means something quite different in Labour terminology—is an example of direct EU legislation under clause 3, which will become retained EU law under clause 6. The CLP regulation aligns the EU’s system of classifying, labelling and packaging chemical substances. It enables chemical products to be traded in the European single market while protecting workers, consumers and the environment. It is why drain cleaners—the sulphuric acid that has been used in the terrible acid attacks—and paint strippers bear the red diamond hazard signs, with which we are all familiar. The regulation will need to be corrected after exit day, but the corrections proposed in the Government’s delegated powers memorandum show how the CLP regulation would be dramatically watered down.

The draft statutory instrument proposes to omit article 46 of the CLP regulation. Article 46 obliges the Government to enforce the safety standards in the regulation and to report on how well those standards are being enforced. In that draft SI, the Government say that because the Commission does not exist, they do not need to report to the Commission, and because they do not need to report, they do not need to enforce. This is a granular and detailed amendment, but that is the sort of thing that the proposed sifting committee will have to consider with an electron microscope to get to the heart of every single deficiency, some of which—with the best will in the world—will not appear until there is a legal challenge. We do not want the labelling and packaging of dangerous chemicals not to be enforced and not reported to any body. Some hon. Members may not be as sceptical as I am about Ministers’ intentions, but none of us can predict the future. We have had three Environment Secretaries in as many years.

Amendment 138 would protect retained EU environmental law, requiring Ministers to certify that they are satisfied that regulations made under clause 7 will not remove or reduce any environmental protection provided by retained EU law. That certification—similar to that created by the Human Rights Act—would be justiciable, meaning that it can be challenged in a court of law. An individual or group could apply for a judicial review if they felt that regulations made under clause 7 had removed or reduced environmental protection. That would not delay leaving the EU, but it would provide a vital check on the powers in clause 7, and it protects the protections.

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Given that amendment 385 and new clause 77 are endorsed not only by 21 Labour MPs, but by Members from almost every party, including the Conservatives, will the Minister please tell the Committee whether the Government will accept the principle of the amendments?
Steve Baker Portrait Mr Baker
- Hansard - -

I rise to speak to clause 7 and to amendment 391, tabled by my right hon. Friend the Secretary of State, which puts the Government’s commitment to transparency into the Bill by requiring that the explanatory memorandums relating to each statutory instrument must include a number of specific statements. I would like to put it on the record that the Government will support the amendments tabled by my hon. Friend the Member for Broxbourne (Mr Walker) on behalf of the Procedure Committee—I will be happy to move them formally if the Chair does not call them for separate decisions. I see from my speaking notes that I am due to speak to approximately 134 amendments, so I apologise in advance if I deal with any of them superficially.

The Government do not propose delegated powers lightly; we do so only when we are confident that secondary legislation is the most appropriate way to address an issue. This House is right to guard jealously its rights and privileges. It is for the purpose of taking back control to this Parliament that millions of people voted to leave the European Union. We want to limit any powers that we are seeking, in so far as we can, while ensuring that they can meet the imperative of delivering a working statute book on exit day.

The power in clause 7 is essential to achieve continuity and stability in the law. The day the UK leaves the EU is drawing ever nearer. If we simply stop at converting and preserving retained EU law, the day after exit the UK statute book will contain many thousands of inaccuracies, holes and provisions that are not appropriate. That would have real-world consequences, leaving errors in the laws that businesses and individuals, sometimes unknowingly, rely on every day. I am grateful that the general premise that we need to take these steps has been accepted by Members on both sides of the Committee and on the Labour Front Bench.

The power in clause 7 is intrinsically limited. As I and other Ministers, including the Secretary of State, have said from this Dispatch Box, it is not a power for Ministers to change law simply because they did not like it before we left the EU. Clause 7(1) is clear that Ministers may only do what is

“appropriate to prevent, remedy or mitigate—

(a) any failure of retained EU law to operate effectively, or

(b) any other deficiency in retained EU law,

arising from the withdrawal of the United Kingdom from the EU.”

If an issue does not arise from our withdrawal from the EU, Ministers may not amend the law using the powers in the clause.

Clause 7 is required to address failures to operate and deficiencies where the law does not operate effectively—for example, with reciprocal arrangements between the UK and the EU that have not formed part of any new agreement. Subsection (2) illustrates what these deficiencies might be. The clause is also subject to a number of direct limitations: it sunsets two years after exit day; and, as listed in subsection (6), it cannot impose or increase taxation, make retrospective provision, create certain types of criminal offence, implement the withdrawal agreement, amend the Human Rights Act 1998 or amend some sections of the Northern Ireland Act 1998.

Oliver Letwin Portrait Sir Oliver Letwin
- Hansard - - - Excerpts

Will the Minister clarify from the Dispatch Box that Opposition Members’ assertions that it would be possible under the provisions for the Government to introduce secondary instruments that changed the safeguards in the Bill are misplaced because no court would allow that to happen under the provisions of appropriateness and deficiencies?

Steve Baker Portrait Mr Baker
- Hansard - -

I am very grateful to my right hon. Friend. I will come on to the specific differences between clause 7 and clause 9 in relation to the power to amend the Act, but I will say now that the Act itself cannot be amended under clause 7. I will come on to develop that point later.

Clause 7(5) lists some possible uses of the power. These could range from fairly mechanistic changes to correct inaccurate references, to more substantial changes to transfer important functions and services from EU institutions to UK equivalents. Both types of change are important to keep the law functioning appropriately. At this stage, we do not know for certain what corrections might need to be made. The negotiations continue and there is a large volume of law to correct in a short space of time.

Chris Leslie Portrait Mr Leslie
- Hansard - - - Excerpts

Will the Minister give way?

Steve Baker Portrait Mr Baker
- Hansard - -

If I may, I will explain my approach to interventions, which I should have mentioned at the beginning of my speech. My speech has about 24 sections to address the 130 amendments that have been tabled. With respect to the hon. Gentleman, I would like to finish speaking on clause 7 stand part before I come on to his amendment. If he will allow me, I will give way to him then.

Secondary legislation made under this power is subject to entirely normal parliamentary procedures. I will come on to talk more about how we ensure sufficient scrutiny of secondary legislation when I speak to the amendments. The Government have always been clear that we will listen to the concerns of Parliament during the passage of the Bill and reflect on its concerns. We are committed to ensuring that Parliament has the right opportunities to scrutinise the Bill and its powers, so I am glad to have the opportunity to address concerns that have motivated many Members to table amendments to the scrutiny provisions in the Bill, alongside the debate on the powers themselves.

We should, however, all be in no doubt that without this power vital functions could not be carried out because they would not be provided for in our law. The UK could have obligations to the EU still existing in statute that would not reflect the reality of our new relationship. There would be confusing errors and gaps in our law. I say again that we do not take lightly the creation of delegated powers, but neither do we take lightly the imperative to deliver a stable, orderly exit that maximises certainty for the UK. Clause 7 is essential to achieving that task.

New clause 18, tabled by the hon. Member for Nottingham East (Mr Leslie), calls for an independent report into the constitutional implication of the powers in clause 7. There have already been a number of such reports and this is likely to continue. For example, the report he suggests sounds similar to the excellent and thoughtful report published recently by the Exiting the European Union Committee. A requirement for one more report after Royal Assent would, it seems to me, add little to the Bill and the definition of its powers. I reassure the House that the Government have listened to Members and to the Committees that have reported on the Bill.

I will turn a little later to amendments 392 to 398, tabled by my hon. Friend the Member for Broxbourne, but I am glad to report that the Government said yesterday that we would accept the amendments to enhance scrutiny of the powers through a sifting committee. Taken together with Government amendment 391 on the content of explanatory memorandums, we believe the amendments deliver more than the sum of their parts, so the House can be assured of the effective scrutiny of the powers in the Bill. I hope that reassures the hon. Member for Nottingham East, but I will give way if he still wishes to intervene.

Chris Leslie Portrait Mr Leslie
- Hansard - - - Excerpts

The Minister mentioned clause 7(5) in relation to the regulatory powers to replace, modify or abolish public service functions. He will know that one of my amendments would delete the Government’s ability to abolish functions by those orders. I wonder whether he could give us examples of public service functions or regulatory activities currently undertaken that the Government may wish to abolish.

Steve Baker Portrait Mr Baker
- Hansard - -

I will come back to that later, but I can tell the hon. Gentleman for a start that the translation functions of the European Union and various institutions will no longer be required.

I come now to amendment 1, from my right hon. and learned Friend the Member for Beaconsfield (Mr Grieve). It has support from all sides of the Committee including, I do not mind telling him, from me, in spirit. The Secretary of State has asked me to put on record that he, too, is sympathetic to the idea of narrowing the Ministers’ discretion. My right hon. and learned Friend seeks to restrict the power of Ministers to make regulations to amend retained EU law to cases where the EU law is deficient only in the way set out in the Bill.

We have listened carefully to my right hon. and learned Friend, my hon. Friend the Member for Weston-super-Mare (John Penrose) and others, and the specific proposal in amendment 1 and amendment 56, tabled by the hon. Member for Nottingham East, is to convert the illustrative list of potential deficiencies in the law in clause 7(2) to an exhaustive list. As my right hon. and learned Friend knows, we do not think that it is possible to do that at this stage.

We know that there will be thousands of deficiencies across our statute book and it is impossible at this stage definitively to list all the different kinds of deficiencies that might arise on exit day. To attempt to do so risks requiring significant volumes of further primary legislation on issues that will not warrant taking up parliamentary time. The specifics of the deficiencies will inevitably vary between cases and it will therefore not be possible to provide a definition that accompanies them all, as amendments 264 and 265, tabled by the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), also seek to do. An exhaustive list would risk omitting important deficiencies, so rendering the powers in clause 7 unable to rectify the statute book. To require primary legislation in such circumstances would undermine the purpose of the Bill and the usual justifications for secondary legislation, such as technical detail, readability and, crucially, the management of time.

We cannot risk undermining the laws on which businesses and individuals rely every day. Our goals are to exit the EU with certainty, continuity and control. However, I listened extremely carefully to the speech made by my right hon. and learned Friend the Member for Beaconsfield, my constituency neighbour, and to his appeal for us properly to consider this issue. I hope that he will not mind my saying that I think that we have already properly considered the issue, but we are perfectly willing to work with him and others to continue to reflect on this point with an eye on Report. We heard a very informative intervention on this point from my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox). My right hon. and learned Friend will know that we are wrestling with the susceptibility of what we do to judicial review, which might undermine the certainty that we are trying to deliver.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

I understand that, and I realise that I am setting a bit of a challenge. Of course, amendment 1 is only one way to deal with this. Interestingly, amendment 1 is the least justiciable route because of its clarity. Other amendments, such as amendment 2, do raise the issue of justiciability. One way or the other—I put this challenge to my hon. Friend—the Government will have to come back with something that tempers the starkness of these powers. I leave it to my hon. Friend’s discretion, which is precisely why I have not tried to fetter him over this.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my right hon. and learned Friend for that intervention.

Geoffrey Cox Portrait Mr Cox
- Hansard - - - Excerpts

I wonder whether my hon. Friend might be attracted by this idea. At the moment, as drafted, the clause gives an inclusive, non-exhaustive list of examples, but I wonder whether the principle of ejusdem generis might not assist us if it were slightly redrafted. One could draft it so that any extensions beyond the inclusive list had to be of the same kind or species as those that were listed. That might give some comfort, if they have to be of a similar character to those enumerated in the Bill.

Steve Baker Portrait Mr Baker
- Hansard - -

I am extremely grateful to my hon. and learned Friend, and I would be happy to meet him, our legal team and my right hon. and learned Friend the Member for Beaconsfield to take their suggestions on board. I am keen to address this, and I know that the Secretary of State is keen to do so, but I am not in a position today to have tabled or accepted an amendment. I ask them to bear with me and have further meetings with us and our legal teams to try to find a way through.

John Penrose Portrait John Penrose (Weston-super-Mare) (Con)
- Hansard - - - Excerpts

The Minister is being very generous and carefully considered in his responses. May I just check what he has said? Is he saying that he intends, if he can, to bring forward an amendment, perhaps on Report, to fix this, after these conversations have taken place, given the sympathy he says both he and the Secretary of State have for the amendments, or is he unable to give that promise to the Committee?

Steve Baker Portrait Mr Baker
- Hansard - -

I will be very straightforward with my hon. Friend: we are keen to move on this issue, but, as several hon. and learned Friends have acknowledged, it is a tricky issue, so we will need to reflect further on how a movement might take place. The Attorney General, who is in his place, and the other Law Officers are well aware of this issue, but we are conscious of the imperative of being able to deal with deficiencies in the statute book, as well as of the advice of hon. and learned Friends.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

I am sure that the Minister will deal with this on some of the other amendments, but the other limb of this is whether certain categories of retained EU law need special protection. All that, I suggest, needs to be looked at as a whole. I am convinced that if the Government do that, they will probably be able to come up with the right solution, and one that commands the confidence of the House.

Steve Baker Portrait Mr Baker
- Hansard - -

I will come to that a little later, but I hope that my right hon. and learned Friend will allow me to move forward.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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Will my hon. Friend allow me to intervene?

Steve Baker Portrait Mr Baker
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I will give way once, but then I will make some progress, because I am 15 minutes in already.

Edward Leigh Portrait Sir Edward Leigh
- Hansard - - - Excerpts

My hon. Friend has taken several interventions. Some of us have loyally supported Ministers throughout this process, and we want him to be robust, keep his lead in his pencil, deliver the Bill and ensure that none of our laws are left in limbo. I encourage him to the last.

Steve Baker Portrait Mr Baker
- Hansard - -

I am extremely grateful to my hon. Friend for his robust support, and I shall certainly watch out for my lead.

Our approach is to provide for the greatest possible scrutiny and transparency of the statutory instruments as they come forward. We began that process of providing transparency in the delegated powers memorandum accompanying the Bill, and in recent days we have published further information on how clause 7 would be used, including yesterday two draft SIs in the key area of workers’ rights, but there is more we can do to provide for scrutiny and transparency, which brings me to amendments 391 and 392 to 398, which will come before the Committee for a vote tomorrow.

I am pleased to repeat that the Government intend tomorrow to accept amendments 392 to 398, tabled by my hon. Friend the Member for Broxbourne, who is not here, but who nevertheless is a great champion of Parliament against the Executive, as he has demonstrated on multiple occasions. The Procedure Committee, which he chairs, agreed the amendments unanimously. I pay particular tribute to the Delegated Powers and Regulatory Reform Committee, whose report informed the Committee’s work, I understand. If his amendments are not moved separately, the Government will be happy to move them formally at the appropriate moment.

The amendments will establish a sifting committee in the House to look at instruments made under the power in clause 7 and two other key powers in clauses 8 and 9. I draw the Committee’s attention to the draft Standing Orders that my right hon. Friend the Leader of the House has published to establish a new Select Committee to consider the negative instruments in the way that my hon. Friend the Member for Broxbourne proposes. The amendments draw on the expertise of the Procedure Committee, and the Government believe that they offer a solution that will give transparency to the House over the Government’s choice of procedure and ensure that the House can recommend that any negative instrument under clauses 7 to 9 instead be debated and voted upon as an affirmative instrument.

The Government have also tabled amendment 391, which will place our commitments to transparency in the Bill and require that explanatory memorandums relating to each statutory instrument include a number of specific statements. The amendments are aimed at improving the scrutiny and transparency of the SIs that are to come. If the House accepts them, they will together be more than the sum of their parts. The combination of the proposals of the Committee and the Government will mean that any deficiency the Government identify in retained EU law will be transparent to the House. In the light of this information, or any other concerns, the House will have a mechanism to propose a negative instrument for the increased scrutiny provided by a debate and a vote in the House.

I particularly noted what my right hon. Friend the Member for Broxtowe (Anna Soubry) said about the political costs of not complying with the Committee’s recommendation. She nods; I am grateful. I am confident that, given that this proposal is in harmony with the way in which other Select Committees work in relation to the Government, it will provide an adequate means of holding Ministers to account on the choice of procedure.

Mary Creagh Portrait Mary Creagh
- Hansard - - - Excerpts

In the absence of the hon. Member for Broxbourne (Mr Walker), whose proposal this is, does the Minister envisage introducing the enhanced sift procedure—the mechanism for informing other Select Committees or Members with a particular interest in a subject—on Report?

Steve Baker Portrait Mr Baker
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The hon. Lady has put her point on the record, but what we are doing is accepting the amendments tabled by my hon. Friend the Member for Broxbourne. I also draw her attention to the Standing Orders.

A number of Members have referred to the general need for a reform of the scrutiny of statutory instruments. I spent a very informative weekend reading the Hansard Society’s book “The Devil is in the Detail”, which I recommend to any Member who wishes to be fully apprised of the case for the reform of delegated legislation, but I must add that this is not the moment for a complete reform of secondary legislation. What we need to do is accept the amendments from the Procedure Committee, and to move forward.

Vicky Ford Portrait Vicky Ford
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Will my hon. Friend give way?

Steve Baker Portrait Mr Baker
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I hope that my hon. Friend will forgive me if I do not. I am very conscious that I am only 20 minutes into my speech.

Vicky Ford Portrait Vicky Ford
- Hansard - - - Excerpts

May I ask my hon. Friend to give way on this point?

Steve Baker Portrait Mr Baker
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I will do so just the once.

Vicky Ford Portrait Vicky Ford
- Hansard - - - Excerpts

May I make a very brief observation about the sifting committee and the expertise? In my experience, the scrutiny of detailed European legislation is sometimes best performed by people with expertise in it. That is why the House of Lords EU Committee has sub-committees on financial affairs, external affairs, energy and environment, justice, home affairs and so forth. Would my hon. Friend at least consider using a sub-committee of that kind, given that it might enable him to complete the sifting process more quickly?

Steve Baker Portrait Mr Baker
- Hansard - -

I think that my hon. Friend has made a strong case for her membership of the sifting committee. I hope that, if the Whips Office has heard her appeal, she will become a member in due course and will enjoy it very much indeed.

Let me now deal with amendment 2. Conditions similar to those in the amendment, tabled by my right hon. and learned Friend the Member for Beaconsfield, are proposed by the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) in amendment 48. Again, we have significant sympathy with the intention behind the amendments. However, they would introduce new terms into the law and invite substantial litigation, with consequent uncertainty about the meaning of the law as we exit the EU.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

Will my hon. Friend give way?

Steve Baker Portrait Mr Baker
- Hansard - -

May I just finish making my case? I must point out to my right hon. and learned Friend that I can speak for two or three hours if I take all the interventions, or I can press on.

I hope to give the Committee some reassurance. Any provision made under clause 7 must be an appropriate means of correcting a deficiency in retained EU law arising from withdrawal. It is a strong test, and it represents a significant limit on the provisions made under clause 7. The limit can ultimately be guarded by the courts, although I note what my right hon. and learned Friend said about that. However, the right place in which to determine which changes in the law are appropriate is Parliament, which is why I hope Members will accept that their concerns have been addressed by the provisions that we have made for greater scrutiny and transparency in the case of each statutory instrument.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

I have noted my hon. Friend’s comments, and I appreciate them, but may I take him back for a moment? All these issues are linked. I acknowledge the contribution from my right hon. Friend the Member for West Dorset (Sir Oliver Letwin), but let me return to the discussion of amendment 1. One possibility might be that the list could only be added to by a statutory instrument. After all, given the extensive powers in the Bill, it would present a double lock. If the Government wanted a new power, or area of power, they could secure it through an SI anyway, because of the extent of the power that we are giving to them. The Minister might like to consider that point.

Steve Baker Portrait Mr Baker
- Hansard - -

I shall return to the clause 7 versus clause 9 argument a little later.

Amendments 3 and 4 were also tabled by my right hon. and learned Friend. The Government agree with his goal of ensuring that instruments under the Bill are accompanied by all the information that the House, the public and, indeed, the sifting committee need in order to understand what they can do and why. We also agree that more can be done to ensure that the House has the proper opportunities to scrutinise the instruments. As I have said, the Government have therefore accepted the amendments tabled by my hon. Friend the Member for Broxbourne, and we will also table amendments to address long-standing concerns about information. The Government believe that the proposed committee represents an option that balances our concerns about the ability to plan and the limited time available before exit day with some Members’ well-stated and long-standing concerns about the efficacy of the scrutiny of negative SIs in this House. Those amendments will address the unique challenge posed by the secondary legislation under this Bill, ensuring that the Government’s reasoning on procedure is transparent to the House and that the House can recommend that any negative instrument should instead be an affirmative one.

Beyond all that, the Government have tabled amendment 391 which will require that explanatory memorandums are alongside each SI and include a number of specific statements aimed at ensuring the transparency of SIs that are to come, and act as an aid to this House, providing more effective scrutiny. These statements will explain, for instruments made under the main powers in this Bill, what any relevant EU law did before exit day, what is being changed, and why the Minister considers that this is no more than is appropriate. They will also contain information regarding the impact of the instrument on equalities legislation. The wording of our amendment and that of my hon. Friend the Member for Broxbourne differs from that proposed by my right hon. and learned Friend the Member for Beaconsfield, but, as he has said, he has put his name to it and I am pleased that we are therefore able to move forward.

I turn now to the issue of what is necessary and amendments 49, 65, 205 to 208, 216 and new clause 24. Amendments 49 and 65 bring us to the important debate about whether the power in clause 7 should allow necessary corrections or appropriate corrections. “Necessary” is a very strict test, which we would expect to be interpreted by a court as logically essential. Where two or more choices as to how to correct EU law are available to Ministers, arguably neither would be logically essential because there would be an alternative. Ministers therefore need to choose the most appropriate course. If two UK agencies, such as the Bank of England or the Financial Conduct Authority, could arguably carry out a particular function, the Government must propose which would be the more appropriate choice. Also, if the UK and the EU do not agree to retain an existing reciprocal arrangement and the EU therefore ceases to fulfil its side of the obligations, the UK could decide it is not appropriate for the UK to provide one-sided entitlements to the EU27; it might not be legally necessary for the UK to stop upholding one side of the obligation, but it might not be appropriate for us to continue if the EU is not doing so.

Yvette Cooper Portrait Yvette Cooper
- Hansard - - - Excerpts

It is my understanding that the Minister is saying that courts that were told that Ministers had two options, both of which might be necessary solutions to a particular problem, would therefore say that neither passed the necessity test because Ministers had chosen between the two of them. That sounds utterly ludicrous as a way in which the courts would make a decision. Will the Minister elaborate by providing a case law example of a situation where the courts have been given such a necessity test and have decided to rip up all necessary options on the basis that there were too many necessary choices?

Steve Baker Portrait Mr Baker
- Hansard - -

I will see whether, before I sit down, my memory can be jogged on an example of case law, but I am only a humble aerospace and software engineer and I do not mind saying to the right hon. Lady that I have sometimes observed that we dance on the head of a pin over particular words. In order to protect the law and the public purse, I think the Law Officers would require me to take appropriate advice from lawyers on the nature of these words and to abide by it as we proceed through the legislation.

Joanna Cherry Portrait Joanna Cherry
- Hansard - - - Excerpts

Earlier in our debate, the right hon. Member for West Dorset (Sir Oliver Letwin) said that we all know what “appropriate” means and so would a court. Can the Minister tell us what “appropriate” means in this context?

Steve Baker Portrait Mr Baker
- Hansard - -

I think what we would say to the hon. and learned Lady is that “appropriate” will follow the plain English definition, which she will find in various places, but what I want to do is move on.

I want to set out why it is important that the test of appropriateness extends to the use of the power in clauses 8 and 17, to which the right hon. Member for Ross, Skye and Lochaber has tabled amendments 205, 207, 208 and 216. For example, leaving the EU, the customs union and the single market may alter the way in which the UK complies with its international legal obligations in relation to taxation, and there will not always be a clear single choice about how to comply with those obligations. Clause 8 will give Ministers the flexibility, as necessary, to make those changes. Using the word “necessary” would risk constraining the use of the power to the extent that where it is appropriate for the UK to adjust our domestic legislation to ensure compliance with international obligations but where there are multiple ways to do so, we might not be able to ensure compliance with our important obligations under international law, thereby undermining the core intention of clause 8.

Steve Baker Portrait Mr Baker
- Hansard - -

I shall be here for some hours if I take too many interventions, but I will give way to my hon. Friend.

--- Later in debate ---
Gary Streeter Portrait The Temporary Chair (Mr Gary Streeter)
- Hansard - - - Excerpts

Order. This is a rather long intervention, and the Minister has made it clear that he does not wish to take too many more interventions as he is seeking to make progress.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my hon. Friend the Member for Weston-super-Mare for putting his own clarification into my remarks.

The Government wish to take the minimum powers necessary—the minimum powers required—to do the job before us, which is to deliver a working statute book by exit day. We do not intend to make any major changes of policy beyond those that are appropriate to deliver a working statute book, where the law after exit day is substantially the same as the law before exit day, so that individuals and businesses can rely on it. The issue surrounding the definitions of “necessary” and “appropriate” is a technical and legal one, rather than a general issue of intent, and I stand by what we have said. We understand that “necessary” would be interpreted as logically essential and could land us with the problem that I have illustrated, with Ministers facing a number of choices about how to proceed. So if I may, I will leave that issue there.

The use of the word “equivalent” in new clause 24 is just as problematic. Returning to the example of a reciprocal arrangement that no longer exists, if we were —with the support of this House and entirely appropriately in line with our agreements with the EU—to end the obligations that were placed on the UK in law, this new clause could lead to a court taking the view that that would not be keeping the equivalent scope, purpose and effect of the law in relation to how the law stood before exit. This would undermine the Bill’s core objective of maintaining a functioning statute book once we leave the EU. I therefore urge right hon. and hon. Members not to press their proposed amendments, and the hon. Member for Brighton, Pavilion (Caroline Lucas) to withdraw her new clause.

I now want to address new clauses 1, 6 and 26, and amendments 33, 35, 36, 38, 39, 41, 68, 129 and 130, tabled by the Leader of the Opposition and others. These would all change the scrutiny process for secondary legislation made under the Bill. We have heard some fine speeches from distinguished parliamentarians, and it is clear that a great deal of thought has gone into the amendments and the arguments supporting them. First, let me be clear that we are committed to appropriate parliamentary scrutiny throughout the whole process of our withdrawal from the EU—Members will know that we make statements, Committee appearances and so on—and, as my right hon. Friend the Prime Minister has already made clear, Parliament will have a vote on the contents of the withdrawal agreement. Crucially, where we are seeking not to replicate current arrangements but to take substantially new approaches, there will be separate pieces of primary legislation for Parliament to work through, as we are beginning to see with the legislation that is being introduced.

However, we must be mindful of the large volume of statutory instruments necessary and the limited time available to work through them if we are to provide certainty and stability on exit. We are working to the timetable of the article 50 process, and there is over 40 years of EU law to consider and correct to ensure that our statute book functions properly on our exit from the EU. According to EUR-Lex—the EU’s legal database—more than 12,000 EU regulations and over 6,000 EU directives are currently in force across the EU. If the majority of statutory instruments do not complete the parliamentary process before we leave the EU, there will be significant gaps in domestic law, which could raise real problems with real consequences. Our law currently gives powers to EU regulators across a wide range of areas that affect people’s lives, from aviation safety to the environment, and we therefore have a duty to act.

New clauses 1 and 26 and amendments 33, 35, 36, 38, 39, 41, 68, 129 and 130 would all give a parliamentary committee or either House of Parliament the role of deciding the scrutiny procedure that each statutory instrument must follow. We are sympathetic to the intention behind the amendments, which is why we made our announcement in relation to the Procedure Committee’s recommendations. All that is in harmony with the existing arrangements for the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee in the House of Lords.

Amendments 34, 37 and 40, tabled by the Leader of the Opposition, would apply the affirmative procedure to a statutory instrument of sufficient policy interest, which is ambiguous and does not involve a practical, clear trigger for the affirmative procedure. Ultimately, it would end up being for the courts to decide what is “of sufficient policy interest”, creating legal uncertainty, which is contrary to the Bill’s central aim. I hope that Opposition Members will agree that that has been superseded by our commitment to the sifting committee.

Amendment 22, tabled by the hon. Member for Rhondda (Chris Bryant), would introduce a means for the Leader of the Opposition or a certain number of MPs to trigger an automatic debate on an SI made under the negative procedure. Again, I hope that the hon. Gentleman will accept that that has been superseded by the sifting committee.

I will now address several amendments relating to the important matter of environmental protection, on which this Government have a proud record. Amendments 96, 97, 98, 138, 333 and 334 and new clauses 27, 62 and 63 were tabled by the Leader of the Opposition and others. We agree with the intentions behind the amendments and new clauses and understand hon. Members’ concerns, but it is essential that the clause 7 power exists as drafted in the Bill. Its purpose is to make changes, often of a technical nature, to deal with deficiencies in retained EU law. While simple in nature, it is essential to ensuring that legislation that protects the environment and rights remains consistent and continues to function effectively once we leave the EU.

Turning to new clauses 27, 62 and 63, the UK has always had a strong legal framework for environmental protections, and that will continue. My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has recognised the risk of the governance gap, which has been explained, and that is why he announced on 12 November our intention to consult on a new independent and statutory body to advise and challenge the Government, and potentially other public bodies, on the environment, stepping in when needed to hold bodies to account and to enforce standards. We will consult on the specific scope and powers of the new body early next year. We understand the intention behind the new clauses, but they would create problems for our framework of environmental governance, about which we have made announcements.

New clause 27 would go further than the existing governance mechanisms for environmental protections set out in EU and UK law. For example, it would require the Government to give powers to this new independent body or bodies to set standards or targets and to co-ordinate action on the environment. Within the current EU mechanism, the exercise of those powers, such as legislating to set standards, would typically involve the Council of the European Union and the European Parliament; it does not normally rest solely with an independent body or bodies. Legislating for new standards and targets should be a matter for our Parliament in future.

New clause 62 would prejudge the consultation’s outcome and would necessarily limit the possible remit of a new body by requiring that it be established by regulations under clause 7. This power for functions currently exercised by EU institutions could be replicated by being given to UK bodies to exercise. Therefore, for example, significant domestic changes to the law post EU exit or new areas of the environment would fall outside its remit.

While we support the intention behind amendments 97, 98, 96, 138, 333, 334 and new clauses 62 and 63, they give no definition of what an environmental protection is or precisely how one might know that such protections were being weakened or narrowed. We believe that the hon. Members would be preparing the starting gun for a vast quantity of litigation so we cannot accept the amendments to clause 7, 8 or 9 or the new clauses.

Allow me to reiterate, Mr Streeter. Clause 7 powers are temporary powers limited in scope. Restricting the use of those powers further, as many of the amendments seek to do, would threaten rights and protections established in domestic and EU law, which we will be retaining. This is contrary to what I believe is the intention behind many of the amendments, so restricting the power as proposed would be counterproductive and we cannot accept the amendments.

Amendments 25, 26, 27, 52, 109, 111, 115, 266, 268, 267, 222, 363 to 373 and new clause 76, plus those amendments consequential on them, deal with the protection of rights in relation to the power in clause 7 or parallel restrictions in clauses 8 and 9. The UK has a long tradition of ensuring that our rights and liberties are protected domestically and of fulfilling our international human rights obligations. The decision to leave the EU does not change that. I reiterate the Government’s firm commitment to protecting rights throughout the EU exit process. As we have debated previously, the Bill ensures that, so far as possible, the laws we have immediately before exit day will continue to apply. As part of this approach, clause 4 will continue to make available any rights and so on which currently flow into domestic law through section 2(1) of the European Communities Act 1972 within the overall scheme of the Bill.

Moreover, the clause 7 power is already restricted so that it cannot amend, repeal or revoke the Human Rights Act 1998 or any subordinate legislation made under it. The restrictions sought by amendments 25, 109, 363 and 364 are therefore not necessary. I am aware that amendments 365, 26, 366 and 367 would place the same restrictions on the powers in clause 8. The clause 8 power is already restricted so that it cannot amend, repeal or revoke the Human Rights 1998 or any subordinate legislation made under it. The restrictions sought by amendments 365 to 367 are therefore not necessary.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

The Government have rightly excluded the Human Rights Act. I just want to understand why the Equality Act 2010 has not also been excluded.

Steve Baker Portrait Mr Baker
- Hansard - -

I will come on to the Equality Act within a page.

Amendments 52, 266, 267, 268, 370, 371 and 372 have been tabled by the right hon. Members for Normanton, Pontefract and Castleford, for Ross, Skye and Lochaber and for Carshalton and Wallington (Tom Brake). They would prevent any changes to the Equality Act. As part of the Government’s clear commitment to maintaining equalities protections throughout the process of EU exit, we have tabled amendment 391, which will ensure that the amendments that will be made to equalities legislation under this and certain other powers in the Bill are transparent, and provide confirmation that the Minister has had due regard to the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Equality Act.

Indeed, hon. Members may not be aware that the Government have already published a document on our website setting out the changes that we intend to make to the Equality Act, making it clear that they are limited to technical adjustments that are designed to ensure that the protections established in the Act continue to operate after exit.

Let me just run through them for the right hon. Gentleman. They include: references to the European Parliament; references to future EU obligations, including new EU obligations implemented under the European Communities Act 1972; references to EU law as a generic term and harmonisation measures; references to specific EU directives which are set out in the paper; and, finally, references to the UK as part of the European economic area. So I commend that paper to right hon. and hon. Members who are interested and/or concerned about it. With that in mind, as changes are necessary, as set out in the paper, I urge right hon. and hon. Members not to press their amendments.

--- Later in debate ---
Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

I can understand the Minister’s point on timing, but the reality is that the terms of amendment 13 are ones with which the Government must be very familiar, as they appear in lots of other legislation. So I find this slightly difficult to follow.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my right hon. and learned Friend for putting me right on that point, but I shall now have to press on rather than explore it. [Interruption.] I am not in a position to answer it, but I will see whether my memory can be jogged.

I turn to the issue of children’s rights, where I am grateful that I have the opportunity to discuss amendment 332 and new clause 53, which stands in the name of my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton). I congratulate him on the powerful speech he made, reminding the House of its obligations. His new clause has received broad support across the House, including from my right hon. Friend the Member for Loughborough (Nicky Morgan), the right hon. and learned Member for Camberwell and Peckham (Ms Harman) and the hon. Member for North Down (Lady Hermon), among others. This new clause and amendment 332, tabled by the hon. Member for Walthamstow (Stella Creasy), give me the opportunity to clarify our position on child refugee family reunion and asylum seekers.

The Government’s commitment to children’s rights and the United Nations convention on the rights of the child is and will remain unwavering. Our ability to support and safeguard children’s rights will not be affected by the UK’s withdrawal from the EU. Domestically, the rights and best interests of a child are already protected through the Children Act 1989 and the Adoption and Children Act 2002, in addition to other legislative measures across the UK. Existing laws and commitments already safeguard children’s rights.

The Government support the principle of family unity and we have in place a comprehensive framework so that families can be reunited safely. The Dublin regulation itself is not and has not been a family reunification route. It confers no right to remain in the UK on family grounds and there is no provision for children to apply for family reunification under it. Crucially, the Dublin regulation creates a two-way process that requires the co-operation of 31 other countries. We cannot declare that we are going to preserve its terms when we need the co-operation of other countries to make it work.

We understand our moral responsibility to those in need of international protection, and that will not change as we leave the European Union. We value co-operation with our European partners on asylum and we want that co-operation to continue, but the way to ensure that is through the negotiations, not by making changes to the Bill before we have been able to make progress on this matter. I am grateful to my hon. Friend the Member for East Worthing and Shoreham and those who support his new clause but, as he said, changes are required in immigration rules. I am grateful to him for his stating the probing nature of the new clause. I ask him to work with Ministers, whom I think he said he has now met, to deliver the right changes to the immigration rules.

Tim Loughton Portrait Tim Loughton
- Hansard - - - Excerpts

I am grateful for the Minister’s clarification, and I do hope that we can make some progress in, say, an immigration Bill. Nevertheless, will he explain to me why it requires the co-operation and agreement of 31 other countries for the UK to be able to say that we will take genuine unaccompanied asylum-seeking children with relatives who are legitimately in this country but who happen not to be their parents?

Steve Baker Portrait Mr Baker
- Hansard - -

My hon. Friend makes his case with particular force. I am sorry to have to tell him that I am not in a position to accept his new clause on that basis. I ask him to work with members of the Government on the immigration Bill that will contain the measures that he and the rest of us wish to see to ensure that we meet our humanitarian obligations.

Steve Baker Portrait Mr Baker
- Hansard - -

I will give way to the hon. Lady once.

Stella Creasy Portrait Stella Creasy
- Hansard - - - Excerpts

The Minister’s colleagues gave a statement on 1 November 2016 that made the commitment to take children from Europe, and it is those children whose rights under the Dublin regulation would be taken away. Can he understand the concern about the fact that he has just announced that the requirement to work with 31 other countries would supersede that? Will he give a cast-iron guarantee that the commitment made in that statement on 1 November 2016 to take children from Europe and to do our fair share for refugee children will be honoured in full?

Steve Baker Portrait Mr Baker
- Hansard - -

These are matters for my right hon. Friend the Home Secretary and the Bills for which her Department is responsible. I hope the hon. Lady will forgive me and understand that it is with the Home Office that these matters need to be taken forward. This Bill is about how we leave the European Union with certainty, continuity and control in our statute book.

Amendments 15 and 16 are on the power to deal with deficiency—

Steve Baker Portrait Mr Baker
- Hansard - -

I just say to my right hon. and learned Friend that I am 51 minutes into my speech and I am only around halfway through it. I would prefer to press forwards.

Lord Clarke of Nottingham Portrait Mr Clarke
- Hansard - - - Excerpts

I understand my hon. Friend’s difficulties. He is responding to new clauses and amendments on an amazingly wide range of topics that keep going into other departmental areas, but it is quite useless if the winding-up speech consists of the Minister saying in a series of statements that he is in no position to answer the questions. If there is an important Home Office question, as there is with the issue of child refugees, it would be normal for a Home Office Minister to be in attendance and to rise in some suitable way to answer the debate. My hon. Friend is reading very competently his carefully prepared brief, which concludes at every stage by saying, “I hope that the amendment will be withdrawn.”

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful for my right hon. and learned Friend’s intervention, which has disappointed me neither in the sympathy that he expressed for my predicament nor in the sting in its tail. The Bill is the responsibility of the Department for Exiting the European Union, with the collaboration of other Ministers who are assisting in its passage. He is absolutely right that it covers a wide range of issues. I believe that I have given an answer on the particular point raised.

On two points of technical legal detail, I have asked for my memory to be jogged in the course of the debate, and I very much hope that I will be able to give an answer before I sit down. My right hon. and learned Friend will understand that I am not, like him, a learned Member of this House; I am a humble aerospace and software engineer. It is necessary for me to go through the clauses of the Bill that relate to parliamentary scrutiny and do not require technical legal expertise.

Steve Baker Portrait Mr Baker
- Hansard - -

I will not give way, because I need to make progress and to keep my remarks to some form of limit.

Amendments 15 and 16, tabled by my right hon. and learned Friend the Member for Beaconsfield, seek to narrow the categories of deficiencies arising from our withdrawal from the EU. The removal of clause 7(8), as amendment 16 proposes, would restrict our ability to keep the law functioning as it does now. Subsection (8) is about deficiencies arising not only from withdrawal, but from how the Bill works. For example, the Bill does not preserve directives themselves, as we have already debated, but instead preserves the UK law, which implements them. In some instances, there are provisions in directives, giving powers or placing restrictions on Government or on EU institutions or agencies, which it would not have made sense to transpose in UK law, but which then need to be incorporated in order for the law to continue to function as it did before exit. For example, the Commission currently holds a power to restrict the disclosure of confidential information in the financial services sector, which is referenced by UK implementation of the capital requirements directive 2013, but which will need to be transferred to the UK. We might also want to transfer powers that the Commission currently has to define what counts as hazardous waste, which is currently in the waste framework directive.

Subsection (8) allows the clause 7 power to correct deficiencies that arise from that withdrawal together with the operation of the Bill. For example, it might be appropriate to lift a relevant part of a directive and insert it into UK law in order to keep the law functioning as close as possible to how it does presently.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

If I may say to the Minister, he has actually provided a totally coherent and helpful answer, which dealt with a probing amendment that I tabled. I am most grateful to him for it.

Steve Baker Portrait Mr Baker
- Hansard - -

Well, I am extremely grateful to my right hon. and learned Friend, who I am very happy to see does remain my friend, as well as my constituency neighbour. I cannot tell him how happy I am to discover that that is the case.

Earlier, my right hon. and learned Friend asked me why Government could not accept additional protections requirements in amendment 13, given that that appears in other legislation. A similar test does appear in the Legislative and Regulatory Reform Act 2006, but the powers in that Act are rarely used, in part because of its complicated requirements. Moreover, the detail of that Act and its powers justify such a test as it is about deregulation. We consider that the existing restrictions in clause 9 are the right ones.

I move forward to amendments 131, 269 to 271, and 359 on restriction of the powers relating to EU citizens’ rights. Since those amendments were tabled, we have secured much-needed agreement on citizens’ rights through our negotiations. I hope Members will be glad that we have now made sufficient progress, subject to the European Council meeting, and that we will be able to move forwards.

The final agreement with the European Union on citizens’ rights is still subject to our negotiations with the EU. However, of course, we expect to give effect to those in the withdrawal agreement and implementation Bill. The House will therefore have both a meaningful vote on the agreement and on its debates on the primary legislation necessary to implement it. I therefore invite hon. Members to withdraw their amendments.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
- Hansard - - - Excerpts

On amendment 359, we seek clarity on the current wording in relation to deficiency by means of a loss of reciprocity. We want to clarify that the Government do not intend to use it in a broad sense—in theory, it could be used in a very wide sense. In fact, it is intended to be narrow, so that major changes to policy, such as citizens’ rights to work or to come to this country, will be effected by primary regulation, not by regulation under clause 7.

Steve Baker Portrait Mr Baker
- Hansard - -

I understand my hon. Friend’s point. Just to reassure him: it is our firm intention to carry through the agreement, which he can read in the joint report of the negotiators, into legislation so that citizens can rely on it in the United Kingdom through that withdrawal agreement and implementation Bill, which I hope we can put before the House in due course.

Amendments 31, 32 and 57 seek to remove so-called Henry VIII powers. I can confirm that amendment 32 is not necessary because the power in clause 7 cannot be used to amend the Act itself. It would be outside the scope of the power—ultra vires. Neither can the power in clause 8 be used for this purpose. Let me be clear: only the power in clause 9 states that it can amend the Bill. None of the other powers in the Bill make that statement. As I said earlier in an intervention, in the event that the use of a clause 9 power is proposed to amend the Act, it would be subject to the affirmative procedure.

--- Later in debate ---
Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

My hon. Friend touches on an important issue. Might it not be the case that any such power done by regulation ought to be done by affirmative resolution? I just suggest that that might be the solution to dealing with tertiary powers, because of their unusual nature. In view of the list he has given us, it seems to me that, in all likelihood, these things would be done by affirmative resolution, but that is something the Government might like to consider between now and Report.

Steve Baker Portrait Mr Baker
- Hansard - -

I just draw my right hon. and learned Friend’s attention to paragraph 1(2)(c) of part 1 of schedule 7, which would require that the affirmative procedure be used if a provision

“provides for any function of an EU entity or public authority in a member State of making an instrument of a legislative character to be exercisable instead by a public authority in the United Kingdom”.

So instruments of a legislative character coming across would trigger the affirmative.

Dominic Grieve Portrait Mr Grieve
- Hansard - - - Excerpts

I take it, therefore, that that covers all the points my hon. Friend has just raised at the Dispatch Box.

Steve Baker Portrait Mr Baker
- Hansard - -

There are also some matters in relation to fees and charges, which we discussed earlier in the debate. What I would say to my right hon. and learned Friend is that, where he has doubts, we have agreed to the sifting committee, and if he is concerned, I hope he will consider membership of that committee so that he can play his part in seeing through this set of measures.

Charles Walker Portrait Mr Charles Walker
- Hansard - - - Excerpts

May I apologise, as Chair of the Procedure Committee, for arriving late to my hon. Friend’s speech? I thought I had missed all of his speech, then I realised I had missed half of it, but it now seems that I have only missed a third of it. However, I do apologise for arriving late, and I hope he accepts that apology at face value.

Steve Baker Portrait Mr Baker
- Hansard - -

I am extremely grateful to my hon. Friend.

Let me return to my notes in order that I might give the Committee an accurate presentation of these measures. Where this type of specialist legislative function exists at EU level, we will need to ensure that the responsibility is transferred to the appropriate UK body so that the UK has a fully functioning regulatory regime in time for day one of EU exit. This might be the case where, for example, it is more appropriate for the Health and Safety Executive in the UK to update lists of regulated chemicals than the Secretary of State, or where it would make sense for the Prudential Regulation Authority to take on responsibility for updating monthly the detailed methodology that insurance firms must use to prudently assess their liabilities. Both these legislative functions are currently carried out at EU level and will need to be taken on by the appropriate UK regulator after exit.

To reply to the point made by my right hon. and learned Friend the Member for Beaconsfield, any SIs made under clause 7 that transfer a legislative function or create or amend any power to legislate will be subject to the affirmative procedure. This is provided for in schedule 7. Therefore, Parliament will be able to debate any transfer of powers and consider the proposed scope of such powers and the scrutiny proposed for their future exercise, which will be set out in any instrument conveying that power. Recognising that some of the existing EU regulation that will be incorporated into UK law will be of a specialised and technical nature, clause 7 allows the power to fix deficiencies to be sub-delegated to the UK body that is best placed to perform the task. EU binding technical standards—the detailed technical rules developed by EU regulators for financial services—are a good example of where we might sub-delegate the clause 7 power. These standards, which run to almost 10,000 pages, do not make policy choices but fill out the detail of how firms need to comply with requirements set in higher legislation. The PRA and the FCA have played a leading role in the EU to develop these standards, and so they already have the necessary resource and expertise to review and correct these standards so that they operate effectively in the UK from day one of exit. I appreciate the concerns of my right hon. and learned Friend and the hon. Member for Nottingham East, but I hope I have demonstrated why we cannot accept these amendments.

Amendments 17, 360 and new clause 35 require additional information. As I have said, we have tabled amendment 391, which will require the explanatory memorandums alongside each statutory instrument to include a number of specific statements aimed at ensuring the transparency of the SIs that are to come and acting as an aid to the most effective scrutiny that this House can provide.

I would like to take a particularly special moment to reassure my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), in whose name amendment 360 is tabled, that we have laid in the Library draft SIs that will help everyone to understand the sorts of changes that we might need to make under clause 7. I would like to reassure him that the Treasury has been engaging with the financial services industry extensively since the EU referendum on the range of issues affecting the sector as we withdraw from the EU. That engagement continues and it includes regular official and ministerial discussion with industry and trade associations and bodies such as the International Regulatory and Strategy Group. That includes discussions on our approach to the domestication of EU financial services regulation through this Bill. That will continue and grow throughout 2018. The Treasury is also working closely with the Bank of England and the FCA to ensure the UK’s smooth and orderly withdrawal from the European Union.

By supporting a close working partnership between industry, regulators and Government, the Government will ensure that their approach to domesticating EU financial services regulation is well understood and based on input from stakeholders. Consistent with the objectives of this Bill, the approach in financial services is to provide certainty and continuity for firms after exit with the UK maintaining high regulatory standards. Financial services is one of the areas where a bold and ambitious free trade agreement could be sought. We are ambitious for that deal and we would do nothing in clause 7 to undermine it.

Robert Neill Portrait Robert Neill
- Hansard - - - Excerpts

I am grateful to the Minister for devoting that portion of his speech to the detail on financial services. That is important for the City, as he knows, and the proposal to publish draft statutory instruments is a well-tested and welcome route.

Steve Baker Portrait Mr Baker
- Hansard - -

I thank my hon. Friend.

Vicky Ford Portrait Vicky Ford
- Hansard - - - Excerpts

I have a quick question about financial services legislation and deficiencies. I want to get it clear in my head, as a non-lawyer, that deficiencies would not cover material policy changes. For example, European banks, including British banks, currently do not have to hold any capital against sovereign debt issued by EU member states. Changing that could be considered to be dealing with a deficiency, because we will no longer be a member state, but it would be a policy change. Will the Minister confirm that that sort of amendment would be picked up and would go through the affirmative procedure?

Steve Baker Portrait Mr Baker
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The first point to make relates to my hon. Friend’s last point. We have agreed to the sifting committee, which will be able to recommend—

Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
- Hansard - - - Excerpts

It will be very busy.

--- Later in debate ---
Steve Baker Portrait Mr Baker
- Hansard - -

The committee will be busy, and that is why I am so grateful for the fact that several hon. Members—presumably including the hon. Gentleman—seem to be volunteering to do the important duty of serving on it, which no one should take lightly. I say to my hon. Friend that we have been extremely clear that any major change will come through primary legislation, but I cannot say that there will be no policy changes at all, however minor. The reality is that if a function comes back to the UK and we have to make a choice about whether it is allocated to the PRA or the FCA, that could be described as a policy choice.

I want to be clear with the Committee. I cannot say that there will be no policy changes whatever, but I can say that the Bill is about certainty, continuity and control. It is about making sure that the law works the day after we exit in substantially the same way as it worked the day before, from the point of view of those who are subjected to it. I can see that my hon. Friend brings great insight to the matter.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - - - Excerpts

On a related point about the new sifting committee, will the Minister outline the Government’s view—this is partly a matter for Standing Orders—on how the chair of that committee would be appointed and whether Parliament could have a role in the election of the chair, rather than the post being appointed by the Government?

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Gentleman has been generous enough to say that he appreciates that that is a matter for Standing Orders. I am very sensitive to the role and powers of Parliament, which we have discussed throughout proceedings on the Bill. As a Minister, I really do not want to stand at the Dispatch Box and trespass—in this debate, of all places—on Parliament’s right to set its own Standing Orders.

Charles Walker Portrait Mr Charles Walker
- Hansard - - - Excerpts

We based the model on the European Scrutiny Committee, in which the Chairman is appointed.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my hon. Friend.

I move on to consent from the devolved Administrations. Amendments 73, 233, 239 and 240 were tabled by the right hon. Member for Ross, Skye and Lochaber and the hon. Members for Airdrie and Shotts (Neil Gray) and for North East Fife (Stephen Gethins). Taking the right hon. Gentleman’s amendments together, we are committed to continuing to respect the devolution settlement fully. We will work closely with the devolved Administrations as we develop fisheries and agricultural legislation, which will be brought through by separate Bills to deliver an approach that works for the whole United Kingdom.

At this point, I hope that the Committee will not mind if I refer to points raised in our previous debate on devolution. Amendments were tabled about a restriction on the power relating to national security. As my right hon. Friend the Prime Minister has said, we are proposing a bold new strategic agreement that provides a comprehensive framework for future security, law enforcement and criminal justice co-operation—a treaty between the UK and the EU—that would complement our existing extensive and mature bilateral relationships with our European friends to promote our common security. That is just one outworking of the Government’s commitment to national security.

I now turn—I think, finally—to amendment 385 and new clause 77. Amendment 385, tabled by the hon. Member for Birmingham, Yardley (Jess Phillips), seeks to replicate the protections in part 3 of the Criminal Justice (European Protection Order) (England and Wales) Regulations 2014 in relation to protected persons. As I understand it, the amendment seeks to provide that the relevant authorities in England and Wales would continue to recognise and act on the orders made under the EU directive by the remaining member states, whether or not they act on ours.

I congratulate the hon. Lady on her powerful speech, but we cannot accept the amendment at this time because our continued co-operation with other EU member states’ courts is a matter to be negotiated. The outcome of the negotiations is not yet certain, and it would therefore be premature to seek to replicate in our law one side of a reciprocal arrangement that may not continue. However, I am happy to make it clear that if the forthcoming negotiations produce an agreement to continue access to the regime established under the directive, or something like it, appropriate steps in legislation will be brought forward to implement it at that time. I therefore urge her not to press her amendment.

Jess Phillips Portrait Jess Phillips
- Hansard - - - Excerpts

I hear what the Minister is saying and I take on board that this has to go through the new negotiations. What I am trying to do with the amendment is to ask Ministers to remember that this needs to go through the negotiations, because it was completely missing from the White Paper on the earlier negotiations.

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Lady’s point is well made and has been heard by me and my right hon. and hon. Friends, and I am grateful to her for making it.

The hon. Lady also tabled new clause 77. It may assist the Committee if I explain that the Government are taking forward a range of work to tackle violence against women and girls and that we are already required to lay annual reports before Parliament on the issue in the context of the Council of Europe convention on preventing and combating violence against women and domestic violence—the Istanbul convention.

The coalition signed the Istanbul convention in 2012 to demonstrate its strong commitment to tackling violence against women and girls, and this Government have made absolutely clear our commitment to ratifying it. The convention seeks to continue promoting international co-operation on this issue. Indeed, it is the first pan-European legally binding instrument that provides a comprehensive set of standards to prevent and combat violence against women.

The hon. Lady will know that we have engaged and will continue to engage with a range of international partners, including the EU, in our efforts to tackle this issue. For example, we recently participated in work with the Council of Europe—as Members will know, it includes both EU and non-EU member states—to develop a best practice guide on stopping forced marriage and female genital mutilation.

I know the hon. Lady desires ensuring that Parliament is updated on this issue. As she will be aware, on 1 November we laid the first report on progress towards ratification of the convention, as required by the Preventing and Combating Violence Against Women and Domestic Violence (Ratification of Convention) Act 2017. The report, which we are required to lay annually, sets out the action we are taking to tackle violence against women and girls and how we comply with the measures set out in the convention. In addition, once the UK has ratified it, we will be required to submit regular reports on compliance to the Council of Europe. As right hon. and hon. Members will appreciate, we want to avoid duplicating our existing reporting requirements in this area.

We are committed to doing all we can to address violence against women and girls both domestically and internationally. As the hon. Lady will be aware, our cross-Government strategy outlines our ambition that no victim of abuse is turned away from the support they need. It is underpinned by increased funding of £100 million, and a national statement of expectations sets out a clear blueprint for good local commissioning and service provision. I hope that I have reassured the hon. Lady that the Government have been, and will continue to be, committed to tackling violence against women and girls and to updating the House on our work in this area and that she will therefore not press her new clause.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

Will the Minister give way?

Steve Baker Portrait Mr Baker
- Hansard - -

Before I conclude my opening remarks, I will give way to the right hon. Gentleman.

Tom Brake Portrait Tom Brake
- Hansard - - - Excerpts

It is possible that I switched off, or perhaps nodded off, during the past hour and 20 minutes, but I do not think I heard the Minister refer to my amendment 124 on the single market, which I assume means that the Government are supporting me.

Steve Baker Portrait Mr Baker
- Hansard - -

The right hon. Gentleman enjoys a jest, but I hope that the Committee will understand that, as I set out at the beginning of my speech—I have now been on my feet for an hour and 20 minutes, compared with an indication that I would take an hour, so I needed to pare down my remarks—it is not the Government’s policy, as he knows, to remain in the single market and the customs union.

In the interests of allowing other hon. Members to contribute to the debate, I will conclude my remarks. We face an unprecedented legislative challenge, to which the power in clause 7 is the only practical solution. The power is only a temporary solution to achieving our key objective: a functioning statute book in time for exit day. The Government believe that we have made significant concessions on the issue, both with the sifting committee and by putting into statute the requirement to include certain information in the explanatory memorandums. I hope that those concessions have tackled the concerns expressed throughout our consideration of these amendments. I am conscious of the commitment I gave to my right hon. and learned Friend the Member for Beaconsfield in relation to the scope of the powers, and I look forward to working with him. I will finish by thanking my hon. Friend the Member for Broxbourne for all that he has done, with the unanimous support of the Procedure Committee, to ensure that the House has the proposal for a sifting committee.

Helen Goodman Portrait Helen Goodman
- Hansard - - - Excerpts

It is a great pleasure to follow the Minister, who presented a rather unbending policy posture this afternoon, but with his usual great good humour. On Second Reading I spoke mainly about the problem of the Henry VIII powers and the excessive use of delegated legislation in the Bill, and I feel justified, given the criticism outside the House that this was a power grab by Ministers.

When looking at clause 7, there are two big issues that we need to address: the scope and content of the delegated legislation, and the institutional architecture. I was therefore pleased to be a member of the Procedure Committee when it agreed to a report that acknowledged the problem and said that the House has a unique and unprecedented requirement and that we need special mechanisms to suit the task ahead. When I first told the hon. Member for Broxbourne (Mr Walker) last January that we should be looking into the Henry VIII powers, I think he was rather underwhelmed, but I think that now, on reflection, he is pleased that we did so. Only he could have secured a consensus between, for example, the hon. Members for Chichester (Gillian Keegan) and for Wellingborough (Mr Bone), the Scottish National party and me, which is a great credit to him. Our report sought a committee of the House to oversee all the delegated legislation.

I am happy to support amendments 393, 395, 396 and 397, which will put in the Bill the requirement for a sifting committee. I am even more pleased that the Government have accepted those amendments—the first changes they have accepted since publishing the proposals last summer. They will give the House a key role in overseeing the delegated legislation. As the Minister said, it is extremely important that Ministers will be required to produce explanatory memorandums. Without those, the committee would have a next to impossible task.

I think that the approach whereby the committee will give advice to Ministers so that statutory instruments can be upgraded from the negative to the affirmative resolution procedure is absolutely essential, because it means that the committee will be able to say that on some issues there must be a debate and a vote of the whole House, or that Ministers must provide an adequate explanation. I also think that the timetable that we have set out, of 10 days, is reasonable. However, I have some doubts about amendments 394 and 398, which would allow Ministers to step outside the process when they believe that the matter under consideration is urgent, because, as we all know, that could be abused by being stretched in a way that undermines the process.

I know that hon. Members, particularly those on the Opposition Benches, are somewhat doubtful about the efficacy of the amendments, but I pray in aid the Hansard Society’s assessment—I think it is the most neutral and impartial assessment one could look for—which agrees that the procedure has been strengthened. There is now a requirement to lay accompanying documents. The House will have more power, and the committee will be able to refer statutory instruments to further debate and upgrade the level of scrutiny.

I regret that the amendments do not reflect fully the report that the Procedure Committee published in November, which said that there should be a scrutiny reserve. That is what the European Scrutiny Committee has and I think that that would be better. It would also be better if Ministers followed the Committee’s recommendation to publish now a full list of the delegated legislation they expect to bring forward.

The amendments tabled by my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), who is on the Opposition Front Bench, would strengthen the process significantly by ensuring that Parliament was able to decide rather than just be consulted. He referred to the terrible saga of tuition fees, where the House was ignored by the Government. That is not reassuring and Ministers must know that. Indeed, one wonders at Ministers who did that knowing that this proposed legislation would be brought forward with a great package of statutory instruments under the negative procedure. That seems to be an extraordinary bit of behaviour. My hon. Friend also tabled amendments that would enable raising the scrutiny level to super-affirmative. Perhaps Ministers should still consider that.

Hon. Members interested in the sifting committee’s terms of reference, make-up and membership will have another opportunity to debate them when the Standing Orders come forward. The Leader of the House put forward some Standing Orders, but they are amendable. If hon. Members wish to change them, it is open for them to do so. I remind all hon. Members on both sides of the House that House business is not whipped business, so they do not need to fear—[Interruption.] I can see one Minister looking at me quizzically. House business is not whipped business, so Members can take a view in line with their conscience on what they think would make for the strongest sifting committee.

On the scope of clause 7 and the content and substance of the statutory instruments, Ministers are being very inflexible and I do not think that that will serve them well. My constituents have contacted me—I am sure other hon. Members have been contacted—with their concerns about environmental policy and animal sentience. I know Ministers have another route for dealing with the animal sentience issue. We also have very strong concerns about children’s rights. In September, we had a very good seminar on children’s rights led by Liverpool University’s law department, which brought together people with concerns about this issue from all parts of the United Kingdom, including Scotland and Northern Ireland. I really feel that the Minister’s response on new clause 53 and the position of child refugees is very disappointing, as is what he said about the UN convention on the rights of the child, which is covered by amendments 149 and 150. Now, that has not been debated today, but we will be voting on it later.

I want to point out to the Minister that he cannot rely on the Children Act 1989, which contains provisions on the best interests of the child, in the way he seems to think he can, because it applies only in certain classes of case referring to children. For example, it does not apply to housing decisions. It is simply not the case that the child’s best interest always has priority in English law, and if we wanted to do something about that we would incorporate the UN convention on the rights of the child into English law, as we did with the European convention on human rights and the Human Rights Act in 1998.

The Minister was very forthcoming in his debate with the right hon. and learned Member for Beaconsfield (Mr Grieve) on the question of looking again at the definition of deficiencies and the list of examples in the Bill. However, many hon. Members will have been extremely disappointed by his inflexibility and failure to shift on the question of whether the negative resolution process can be used where the Minister thinks it is appropriate and not necessary. This was covered by my hon. Friend the Member for Nottingham East (Mr Leslie) in amendment 68 and my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) in amendment 49. I have to say to the Minister that I do not think that he convinced many Opposition Members on that.

Similarly, on tertiary legislation, it is incredible to argue that the financial regulators are not making policy choices. They are. It may well be that they are in a better position given the length, complexity and technical nature of such matters to be the people responsible for those regulations. It may well be that they are in a better position to do that than Members of this House, but I do not think the Minister should claim that policy choices are not being made here, because they clearly are being made all the time.

Steve Baker Portrait Mr Baker
- Hansard - -

I will have to check the record—I was just flicking through my speaking notes—but I am sure that when I said that there were no policy decisions, that was about a 10,000 page document about how institutions were to comply with regulations. On the particular point about tertiary legislation and the financial regulation system, I feel sure that when the hon. Lady and I served together on the Treasury Committee she would have been as indefatigable a defender of the independence of the Bank of England as I would have been. Surely she does not want to undermine that.

Helen Goodman Portrait Helen Goodman
- Hansard - - - Excerpts

I do not wish to undermine that. I just want the Minister to present what I believe to be a more accurate picture to the House about the content of tertiary legislation. That is the point that I am making.

It simply comes down to the fact that clause 7 gives Ministers too much scope. That brings into doubt whether the stated intention of the Bill, which is, simply, to translate the body of European law on to the UK statute book, is all that can happen once the Bill is passed. That is the problem with it.

The thing that will probably most concern our constituents is the proposal to abolish the functions of the EU agencies. That is extremely worrying and we do not get clear answers from Ministers on individual cases. My hon. Friend the Member for Wakefield (Mary Creagh) spoke about this in relation to the European Environment Agency and the European Chemicals Agency. The Minister will have seen, as I did yesterday, on the front page of the Financial Times the pressure from the chemicals and pharmaceuticals industries over chemicals and medicines safety regulations. When we ask Ministers in other Departments what will happen, we do not get any certainty. This is not at all reassuring. There are big risks for the economy if we do not handle this much better than the Government are handling it now. The issue of the regulations of the agencies is the thing that can have the most significant impact on the economy. Whatever else people voted for when they voted to leave the EU, they certainly did not vote to lose jobs and be poorer.

General Affairs Council

Steve Baker Excerpts
Monday 11th December 2017

(6 years, 5 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

Lord Callanan, Minister of State for Exiting the European Union, has made the following statement:

I will be attending the General Affairs Council in Brussels on 12 December 2017 to represent the UK’s interests. Until we leave the European Union, we remain committed to fulfilling our rights and obligations as a full member.

The provisional agenda includes:

Preparation of the European Council, 14 to 15 December 2017: Draft conclusions

The Estonian presidency will present the final draft conclusions on the agenda for the December European Council.

European Council follow-up

The presidency will provide an update on the implementation of the October European Council (OEC) conclusions. The OEC agenda included: migration; digital; defence; and external relations, which involved discussions on Turkey, the Democratic People’s Republic of Korea and Iran.

Legislative programming—joint declaration on interinstitutional programming

Following the exchange of views on the 2018 Commission work programme at the November General Affairs Council, the presidency will present the “joint declaration” of the European Parliament, European Commission and Council of Ministers, which sets out the priorities for 2018.

European Semester 2018—annual growth survey

The Commission launched this year’s European Semester on 22 November and is due to present this year’s annual growth survey.

[HCWS336]

European Union (Withdrawal) Bill

Steve Baker Excerpts
Mike Gapes Portrait Mike Gapes
- Hansard - - - Excerpts

I was here for seven hours on Monday before I spoke, so I feel that I can say at least a few words today.

We face a fundamental choice in this debate. Are we still a parliamentary democracy, or do we simply—because of a very narrow vote on 23 June 2016—take our eyes off of the detail and go like lemmings towards anything in order to implement a decision that is thought to be irreversible? The leave campaign told us that it was about taking back control. The reality is that this Parliament must assert itself and take back control from an overweening and incompetent Executive who want Henry VIII powers in their Bill and wish us just to be supine—to lie down and accept anything that they come forward with.

That is why my hon. Friend the Member for Nottingham East (Mr Leslie) tabled new clause 17, which I am delighted to support. It would mean that there has to be an independent assessment of the costs of the Government’s proposals. We in this House—this democratic Parliament —can then assert centuries-old tradition against overweening Executive power. We can decide democratically. We can assert and take back control. That is why we need to vote for new clause 17 and support the associated amendments.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

I thank right hon. and hon. Members for their participation in this debate. I congratulate the hon. Member for Nottingham East (Mr Leslie) on his new clause, because he has achieved a considerable widening of the debate’s scope, which has led to a wide range of contributions.

Clause 12 is not about paying any negotiated financial settlement. It is about ensuring that Parliament has authorised the Government and the devolved Administrations to incur expenditure under this Bill. It is also about the preparation for the making of statutory instruments under the powers of the Bill or under existing powers to make subordinate legislation as modified by or under the Bill. The clause has two functions. The main text of the clause is concerned with parliamentary approval for the Government to spend money. The clause also gives effect to schedule 4, which is concerned with fees and charges by which the Government, devolved Administrations and arm’s-length bodies raise money.

Clause 12 and schedule 4 will ensure that all the money that might flow into and out of the Exchequer as a consequence of this Bill is proper and respects the long-established rules for the relationship between this House and the Treasury, as laid down in the 1932 Public Accounts Committee concordat and the Treasury guidance in “Managing public money”.

Taking back control of functions the UK has long delegated to European Union institutions may cost money. That expenditure will come from the use of the powers in the Bill. Although at this stage in the negotiations it is too early to say precisely what that expenditure will be, it might involve expanding public authorities in the UK, recruitment at those authorities or setting up new IT systems. That is not to say that the UK cannot perform those functions more efficiently and, crucially, at a lower cost than the European Union, but clearly we cannot say that it will cost the Government nothing at all to carry out the new responsibilities. It is therefore vital that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.

--- Later in debate ---
Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

Does the Minister accept that we should hope that those fees and charges will be lower than those that have been paid until now to EU institutions?

Steve Baker Portrait Mr Baker
- Hansard - -

I am happy to tell the right hon. Gentleman that, as a good Conservative, I certainly hope to reduce the costs on businesses and individuals. I will come to his amendments in a moment.

New clause 17 and amendment 54 show an understandable desire to protect the role of this House, but they are not necessary. The Government have always been clear that the negotiated financial settlement will be part of our withdrawal agreement and that the House will be given a vote on that agreement. My right hon. Friend the Secretary of State for Exiting the European Union was very clear on 13 November when he announced the withdrawal agreement and implementation Bill. He said that, as one of the principal elements of our agreement with the EU, we expect that legislation to include authorisation to pay any financial settlement that is negotiated with the EU. The Bill we are debating today is about ensuring that the statute book is operational on exit day, not about paying any settlement. The same argument applies to new clause 80.

Chris Leslie Portrait Mr Leslie
- Hansard - - - Excerpts

The Minister says that there will be an opportunity to vote on the finances, but only as part of the entirety of the proposed withdrawal agreement. Would it not be proper, as is the case with many other financial issues, for the House separately to authorise financial expenditure in relation to exiting the European Union? Surely the Government should commit to that power for the House of Commons, or will he deny us that opportunity?

Steve Baker Portrait Mr Baker
- Hansard - -

I am confused by the hon. Gentleman, because he is such a diligent Member of the House. I explained moments ago that we will bring forward the withdrawal agreement and implementation Bill, which will cover any financial settlement, among other withdrawal issues. I would of course expect that Bill to go through the normal legislative processes, during which he and other right hon. and hon. Gentlemen will have a full opportunity to scrutinise those provisions.

I turn to the amendments tabled by the right hon. Member for East Ham (Stephen Timms). The power in part 1 of schedule 4 can be used to create fees and charges of the type that amendment 153 is concerned with. That power can be used to establish new fees only in relation to functions being transferred to UK entities under the powers in this Bill. In most cases, one might expect that it will be replacing a fee set at EU level, but in some cases it may be right that it will be better value for the taxpayer and for users of the services to create a new fee to pay for functions that the UK previously funded through the EU budget.

Amendment 152 does not recognise the need for adjustments to other, peripheral aspects of the fees regime in connection with charging fees or other charges—for example, arrangements for refunds, which I think all Members can agree should be possible so as not to leave ordinary hard-working fee payers unfairly out of pocket. Furthermore, future Governments, in the fullness of time, may wish to simplify charges, amalgamate them, or charge less for one function or another.

Stephen Timms Portrait Stephen Timms
- Hansard - - - Excerpts

In future it may be necessary to do all sorts of things, but surely the powers in this Bill should not be used to impose new charges on businesses that are not being paid at the moment.

Steve Baker Portrait Mr Baker
- Hansard - -

This Bill, first and foremost, is about exiting the European Union successfully, with certainty, continuity and control, as the right hon. Gentleman will know. I draw his attention to schedule 2(7), which makes it very clear that in the event that a provision imposed a fee or charge, or conferred a power to sub-delegate, it would go to the affirmative procedure and this House would have the opportunity to vote on it.

I turn to amendment 339 on sub-delegation. It is right that this House keeps strict control over all financial matters, but this Bill is about ensuring continuity. I remind the Committee that this power is available only if the public authority is taking on a new—[Interruption.]

David Hanson Portrait The Temporary Chairman (David Hanson)
- Hansard - - - Excerpts

I am sorry to interrupt the Minister, but there is quite a lot of hubble and bubble from Members who have not been in the debate. Members who have been here for the past three hours wish to listen to the Minister’s response.

Steve Baker Portrait Mr Baker
- Hansard - -

Thank you, Mr Hanson.

The power is available only if the public authority is taking on a new function under this Bill, and the fees and charges must be in connection with that function. The amendment would force Ministers to exercise this power on behalf of public authorities, such as the Financial Conduct Authority, which this House has made statutorily independent from Ministers. The Government believe that it is right that where Parliament has already granted the power to set up rules within these independent regulators, fees and charges of the type envisaged by this power should continue to be exercised by those public authorities. For good reasons, they have been made independent of Government, and Parliament should have the option to maintain that status quo. I stress that the terms on which any public authority would be able to raise fees and other charges will be set in the statutory instrument that delegates the power to them; and that, as I said, any such delegation would trigger the affirmative procedure, ensuring that this House considers and approves any delegation of the power and how it would be exercised.

Amendment 340 on cost recovery has the disadvantage that it would prohibit what I hope Labour Members would consider to be progressive principles of ensuring a spreading of the burden of regulation. It also might not allow regulators to cover the cost of enforcement.

Clause 12 and schedule 4 are about delivering a successful EU exit with certainty, continuity and control. Clause 12 is not about enabling the payment of any negotiated financial settlement, and neither is schedule 4 about subverting the normal process of raising taxation. The amendments muddy the waters of what these provisions are for. These provisions are simply about ensuring that the financial aspects of taking back control and preparing to take a fully independent position on the world stage are put on a sound and proper footing.

Stella Creasy Portrait Stella Creasy
- Hansard - - - Excerpts

The Minister said that he thought that all the amendments muddied the water, but he has also said that it was right that Parliament should have a vote on the money—on the divorce bill—and that there should be parliamentary oversight of any additional controls. Why then is he not going to accept amendments that simply ensure that that is the case? Just what kind of control is he seeking to take back?

Steve Baker Portrait Mr Baker
- Hansard - -

As the hon. Lady would expect me to say, what I want is Parliament to have proper control over our laws, our money, our borders and our trade policy. Having expressed my gratitude for her intervention, I hope that I have tackled right hon. and hon. Members’ concerns, and I urge them not to press the amendments.

Chris Leslie Portrait Mr Leslie
- Hansard - - - Excerpts

I have heard what the Minister said. In fact, he even had the gall to use the phrase, “take back control” while simultaneously telling Parliament that it cannot have a separate, free-standing vote on this massive divorce bill, which will potentially cost the constituents of every single Member in the Chamber—every man, woman and child—up to £1,000 a head. They expect accountability for those decisions, and I want all those hon. Members, particularly those who advocated a hard Brexit, and who still potentially advocate going over the cliff edge into World Trade Organisation terrain, to walk through the Lobby and be held accountable for the amount of money that it will cost taxpayers for decades to come. That is why I do not wish to withdraw new clause 17. I believe that Parliament should exercise control over those amounts of money. Let us take back control and have accountability for those sums of money. I wish to push this to a vote.

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

General Affairs Council

Steve Baker Excerpts
Thursday 16th November 2017

(6 years, 6 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

My hon. Friend Lord Callanan, Minister of State for Exiting the European Union, has made the following statement:

I will be attending the General Affairs Council in Brussels on 20 November 2017 to represent the UK’s interests. Until we leave the European Union, we remain committed to fulfilling our rights and obligations as a full member.

The provisional agenda includes:

Preparation of the European Council, 14 and 15 December 2017

There will be a discussion on the agenda for the December European Council. This includes: defence, focusing on the launch of PESCO (permanent structured co-operation) and a review of EU-NATO co-operation; social, education and culture, which includes a follow up to the November Gothenburg social summit; migration, involving a leaders’ debate on both the internal and external dimensions of migration as part of Donald Tusk’s leader’s agenda; and external relations.

European Council follow-up

The presidency will give an update on the implementation of the October European Council conclusions on migration, digital Europe, security and defence, and external relations.

Legislative programming—Commissions work programme for 2018 (CWP 2018)

Commission First Vice-President Frans Timmermans will present the CWP 2018, which sets out the legislation and other initiatives that the Commission intends to present to the Council of Ministers and European Parliament over the coming year.

Interinstitutional agreements (IIA) implementation

The presidency will lay out what progress has been made on the interinstitutional agreement on better law-making (IIA), signed by the Presidents of the European Council, Commission and Parliament in April 2016. The IIA set out the commitments of these institutions regarding better regulation, interinstitutional relations and the legislative process.

European semester 2018

The presidency will introduce the timetable for the European semester 2018, which will provide a framework for the co-ordination of economic policies across the EU.

[HCWS248]

Exiting the EU: Sectoral Analysis

Steve Baker Excerpts
Tuesday 7th November 2017

(6 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts

Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Matthew Pennycook Portrait Matthew Pennycook (Greenwich and Woolwich) (Lab)
- Hansard - - - Excerpts

(Urgent Question): To ask the Secretary of State for Exiting the European Union if he will make a statement on when the Government intend to provide the Select Committee on Exiting the European Union with impact assessments arising from sectoral analyses carried out by Her Majesty’s Ministers.

Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
- Hansard - -

We have this morning laid a written ministerial statement on this issue, which sets out the timeline and nature of our response to last week’s motion. As the Government have made clear, it is not the case that there are 58 sectoral impact assessments. During the Opposition day debate, the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), told the House:

“there has been some misunderstanding about what this sectoral analysis actually is. It is not a series of 58 economic impact assessments.”—[Official Report, 1 November 2017; Vol. 630, c. 887.]

The Secretary of State for Exiting the EU made the same point during his appearance before the Lords EU Committee on 31 October, and to the House at oral questions to the Department for Exiting the European Union on 2 November.

Let me clarify exactly what the sectoral analysis is. It is a wide mix of qualitative and quantitative analysis, contained in a range of documents developed at different times since the referendum. It means looking at 58 sectors to help to inform our negotiating positions. The analysis examines the nature of activity in the sectors and how trade is conducted with the EU currently, and in many cases considers the alternatives after we leave the EU, as well as looking at existing precedents.

Our analysis is constantly evolving and being updated, but it is not, and nor has it ever been, a series of impact assessments examining the quantitative impact of Brexit on these sectors. Given this, it will take the Government some time to collate and bring together this information in a way that is accessible and informative to the Committee. We will provide this information to the Committee as soon as possible. We have made plain to the House authorities that we currently expect this to be in no more than three weeks.

Matthew Pennycook Portrait Matthew Pennycook
- Hansard - - - Excerpts

Here we are again, Mr Speaker. As you will know, Members from both sides of the House have repeatedly requested that the 58 sectoral analyses undertaken by the Government be released. On each occasion prior to last Wednesday’s debate on our motion, Ministers argued that publication of these analyses would compromise the UK’s negotiating position. On no occasion did Ministers argue or imply that the information did not exist as discrete documents, yet yesterday, in his letter to the Chair of the Brexit Committee, that was precisely what the Secretary of State argued. Can the Minister tell the House why, if the information that Members have repeatedly called for does not exist as a series of discrete impact assessments, a clear impression has been allowed to develop over many months that it does?

In a response dated 29 September 2017 to a freedom of information request submitted by my hon. Friend the Member for Feltham and Heston (Seema Malhotra) requesting details about the analyses and their publication, the Department’s FOI Team stated:

“the Department for Exiting the European Union…holds the information you have requested”.

Yet in the Secretary of State’s letter to the Chair of the Select Committee, he implies that it will take time to collate and bring together the information because some of it is held by other Government Departments. Can the Minister confirm that the information given by his Department’s FOI Team on 29 September is correct and that the Department holds the information? If not, why was the Department’s FOI team permitted to state that the information is held? If the Department holds some of the information but not all of it, what is preventing the information that is available from being released to the Brexit Committee immediately?

This farce has dragged on for far too long. Ministers cannot use semantics and doublespeak to avoid the clear instruction that this House has given. There can be no further delay; Ministers just need to get on with it.

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Gentleman says that an impression has been allowed to develop. It was never our purpose to allow such an impression to develop. As I have explained, the Government carry out a wide range of analysis across these sectors in order to inform our negotiating position. Our purpose is to develop our negotiating capital. Our purpose is not to create the kinds of stories that the hon. Gentleman seems to be pursing. The Government hold a wide range of information across a wide range of documents. The information is provided by Departments and collated by my Department, but what it does not comprise, and has never comprised, is quantitative forecasts of impact on those sectors. I think that the public will look at Labour Members today, look at what they are asking for, look at the kind of narrative they are trying to create, and ask, “Whose side are they on?”

John Whittingdale Portrait Mr John Whittingdale (Maldon) (Con)
- Hansard - - - Excerpts

As vice-Chairman of the Committee on Exiting the European Union, I thank my hon. Friend for his answer. The Select Committee has not actually discussed this matter formally, but from my own point of view, may I tell him that what he has said to the House this afternoon seems to be entirely reasonable?

Steve Baker Portrait Mr Baker
- Hansard - -

I am very grateful to my right hon. Friend. I believe that my right hon. Friend the Secretary of State has spoken to the Chairman of the Committee, from whom I am sure we will hear, and I believe that a further meeting has been scheduled.

Stephen Gethins Portrait Stephen Gethins (North East Fife) (SNP)
- Hansard - - - Excerpts

It is absolutely astonishing that more than 500 days on from the referendum these documents are not yet prepared. If the Government are scrabbling them together in three weeks’ time, woe betide us all. Have they been shared with the devolved Administrations, as the Secretary of State intimated to the Committee? Can the Minister confirm what other assessments have been made about the regional impacts of leaving the European Union?

Steve Baker Portrait Mr Baker
- Hansard - -

First and foremost, this criticism comes from a party that decided to leave the United Kingdom without determining what currency it would use. The sectoral analysis has been discussed with the devolved Administrations and the Joint Ministerial Committee, and we will give careful consideration, as and when information is released to the Select Committee, to how we share that information with the devolved Administrations. Once again, I reiterate that the information that we have does not comprise now, and never has done, quantitative forecasts of impact—not on sectors and not on any region.

John Baron Portrait Mr John Baron (Basildon and Billericay) (Con)
- Hansard - - - Excerpts

This is a storm in a teacup. Given the extent of the analysis, the timeframe seems reasonable, because if an incomplete picture was presented, the Opposition would be the first to criticise and to suggest that we were hiding something. I also suggest to the Minister that we should not want to weaken our negotiating hand.

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my hon. Friend—he is exactly right. Our purpose as a nation is to go forward and maximise our negotiating capital to deliver the best possible deal for all people in the United Kingdom.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
- Hansard - - - Excerpts

We now know what this material consists of, but I am concerned to read in a letter that the Secretary of State sent me that Ministers now intend

“to collate and bring together this information in a way that is accessible and informative for the Committee.”

I would expect the Committee to receive these documents in the form they were in when the motion was carried—in other words, unamended. As I made clear in my letter to the Secretary of State, I think it is for the Committee to decide in what form they are published. We are conscious of our responsibilities, in the same way as the whole House is. Can the Minister therefore confirm that that is what will now happen, and that there will be no further undue delay?

Steve Baker Portrait Mr Baker
- Hansard - -

The material that we hold includes commercially sensitive material and material that is relevant to our negotiating position. The House has previously voted not to release information that would be prejudicial to our negotiating position. If we were to give the right hon. Gentleman and the Committee the original reports commissioned at the beginning of the Department’s life, he would find that that material was incomplete and out of date. It is our intention to satisfy the motion by providing to him information that is relevant, timely and correct.

Baroness Morgan of Cotes Portrait Nicky Morgan (Loughborough) (Con)
- Hansard - - - Excerpts

The Minister does himself no favours by turning into a partisan matter a perfectly legitimate request by this sovereign Parliament for information about the most important negotiations to affect this country for decades. In the Secretary of State’s letter to the Chair of the Brexit Committee, he talks about

“a wide mix of qualitative and quantitative analysis”.

Presumably, one part of that is the model that the Chancellor referred to when he gave evidence to the Treasury Committee recently. He said that there is a cross-departmental model that

“looks at impacts on different parts of our economy”.

My understanding is that that model is available immediately. Will it be disclosed immediately?

Steve Baker Portrait Mr Baker
- Hansard - -

The Treasury model to which my right hon. Friend the Chancellor referred is not contained within the documents, which I have carefully studied.

Ben Bradshaw Portrait Mr Ben Bradshaw (Exeter) (Lab)
- Hansard - - - Excerpts

The Minister says that there is nothing of significance in these documents and that they do not measure any impact. One might ask: what is the point of them, on the biggest single issue facing our country in our lifetimes? On the timing, Mr Speaker, you were very clear last week after the vote. You talked about days, not weeks, and there was also a discussion of Ministers being in contempt of Parliament. Perhaps you might like to remind the Minister what the potential sanctions are for a Minister who is found to be in contempt of Parliament.

Steve Baker Portrait Mr Baker
- Hansard - -

I think that the right hon. Gentleman has put the words “nothing of significance” in my mouth. I do not think that I have ever said that. We are saying to the House that this sectoral analysis does not contain quantitative projections of impact. As for the right hon. Gentleman’s final question, I think that is a matter for you, Mr Speaker.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
- Hansard - - - Excerpts

The motion that the House passed last week without objection referred to

“the impact assessments arising from those analyses”,

in reference to the previous list. I can well imagine that these assessments are scattered around different Departments, and that different officials are looking at various bits of work and saying, “Does this count as part of one of these assessments or not?” I think it would have been unconscionable for the Government to come to the House and suggest that they were not going to comply with the motion or release this information, but may I suggest that there should be some private dialogue with the highly respected Chair of the Brexit Committee, on Privy Council terms, about how to resolve the matter without it becoming a matter of embarrassment that disrupts the negotiations?

Steve Baker Portrait Mr Baker
- Hansard - -

It is our intention to comply with the will of the House, but we cannot release what we do not have. We will bring forward the material that is appropriate, timely and up to date, and that will inform the Committee. Steps have already been taken to carry forward the appropriate meetings.

Mary Creagh Portrait Mary Creagh (Wakefield) (Lab)
- Hansard - - - Excerpts

In response to detailed questioning at the Environmental Audit Committee last week, Environment, Food and Rural Affairs Ministers revealed the existence of sectoral analyses for the waste and chemicals sectors. Given that those two analyses exist and have been read by Ministers, what is preventing their immediate publication?

Steve Baker Portrait Mr Baker
- Hansard - -

The reports that I have read on waste and on chemicals date back to the origins of the Department and so, as I suggested earlier, are now out of date and do not reflect our current thinking. We wish to inform the Committee with the latest information.

Anna Soubry Portrait Anna Soubry (Broxtowe) (Con)
- Hansard - - - Excerpts

Unlike the Minister, I attended the entire debate. I have gone back on my phone to look at the words of the Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), and I make it absolutely clear—the Hansard record of the debate is absolutely clear—that the nuts and bolts of the debate were about redaction. The argument that the Government advanced was that some material in the papers would be commercially sensitive and might have an impact on the negotiations. Will the Minister please take this matter seriously? This is a gross contempt of this place. The Government were specifically asked what, if they were not going to vote against the motion, was their problem. Disclose this material, and disclose it properly and quickly.

Steve Baker Portrait Mr Baker
- Hansard - -

My right hon. Friend is being perhaps unnecessarily unkind to me. I am sure that I did attend the entire debate, although I might have slipped out briefly. Perhaps I should watch the entire video over the weekend, but we will see. I would say to her that there has been no suggestion of redaction from the Treasury Bench, and certainly not during the course of that debate. That came from the Opposition Front Bench, when—

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Lady says that is not true, but the record will show that when the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) was standing at the Dispatch Box, in dilating on his experience as Director of Public Prosecutions, he offered redaction, gisting and summaries—[Interruption.] He did that in his opening speech, whatever the hon. Lady may say.

Pat McFadden Portrait Mr Pat McFadden (Wolverhampton South East) (Lab)
- Hansard - - - Excerpts

There are times when a Government have the stench of death about them. They are leaderless and directionless, and we learn today that their defence is that they are also contentless. Most concerning of all is the Minister’s attempt to come to the House today and say that those who ask for this information should have their patriotism questioned. This will not stand, and it cannot be allowed to stand. The House gave the Minister an instruction, so my request to him today is to show a modicum of competence—in this week, of all weeks, for the Government —and pass these studies to the Committee, without redaction, as soon as possible.

Steve Baker Portrait Mr Baker
- Hansard - -

We have been given an instruction and we are seeking to comply with it earnestly. I would say to the right hon. Gentleman that there is absolutely no question of being content-free. We have a large amount of content, but we need to draw it together and present it to the Committee in a form that is useful. On his other point, it bears repeating that it is time for the House to come together and strive in the national interest to implement the referendum result, not to seek anything that would undermine our negotiating capital.

Desmond Swayne Portrait Sir Desmond Swayne (New Forest West) (Con)
- Hansard - - - Excerpts

When the papers are published, will they inform the negotiations in any way? In that respect, does the Minister sometimes wonder whose side Opposition Members are on?

Steve Baker Portrait Mr Baker
- Hansard - -

I am grateful to my right hon. Friend. It is very important that we in this House do not do the work of our negotiating partners for them. We wish to have a deep and special partnership, and to go forward in a spirit of friendship, but it is not our place to do an analysis of our own negotiating capital for our partners.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
- Hansard - - - Excerpts

I actually want to commend the Minister, as I thought it was impossible for this Government to get more incompetent but they are doing a very good job of it. When they release the data, will they explain why, if they have undertaken all this analysis, none of it is quantitative? That does not bear any credence whatsoever, because there is no point undertaking an analysis without checking what the impact will be.

Steve Baker Portrait Mr Baker
- Hansard - -

I am very happy that I now have so many hon. Friends from Scotland, which is a statement about what the Scottish people think of the competence of the hon. Gentleman’s party. In so far as there is quantitative analysis in the documents, which I have carefully studied, that is a statement of the facts as they were known at the time, not a projection into the future.

Christopher Chope Portrait Mr Christopher Chope (Christchurch) (Con)
- Hansard - - - Excerpts

Most fair-minded people would accept that it is reasonable that some of this material may not be available until three weeks have expired, but there must be some of the material that could be made available now or sooner than in three weeks. Will my hon. Friend assure the House that he will do his best to make available soon that material which could be supplied before the three-week deadline?

Steve Baker Portrait Mr Baker
- Hansard - -

It is our intention to make available a coherent and up-to-date set of information within three weeks.

Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
- Hansard - - - Excerpts

I hesitate to ask this question, because I have an image in my mind of the Minister rocking up to the office of my right hon. Friend the Member for Leeds Central (Hilary Benn) with carrier bags full of paper and asking him to sift through them. Nevertheless, will the Minister assure me that when the documentation is made available, it will include comparative information about the sectoral impact of the different forms of Brexit that the Government have considered but discounted?

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Lady asks an interesting question. It is precisely because we wish to avoid dumping unnecessary information on the Committee that we want to take the time necessary to bring together the information in an appropriate form—[Interruption.] Well, that was what the hon. Lady said. She asked for comparative economic forecasts, but I have already said repeatedly that this material does not include quantitative economic forecasts.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
- Hansard - - - Excerpts

What the Minister has said is perfectly reasonable, but I urge him to release the documents in full as quickly as possible, as redactions only enflame interest. I have lived through many of these rows, and once such documents are published, they are often found to be very long and boring. When Parliament gets itself into a fine passion about this sort of thing, the travelling is often more fun than arriving.

Steve Baker Portrait Mr Baker
- Hansard - -

On my hon. Friend’s final point, having carefully read the initial analysis, I think I can say with some certainty—[Hon. Members: “Oh, we have some analysis!”] I say to SNP Members that, as I have already told the House, I have read the initial round of analysis from the beginning of the life of the Department.

I can say to my hon. Friend that, in this case, the arrival will indeed be far less interesting than the journey.

Seema Malhotra Portrait Seema Malhotra (Feltham and Heston) (Lab/Co-op)
- Hansard - - - Excerpts

The House will be absolutely staggered to hear Ministers say today that it is not the case that 58 sectoral analyses exist. In his evidence to the Select Committee, the Secretary of State said that the Prime Minister had seen the summaries, and that they comprised excruciating detail. In its response to my freedom of information request, the Department said that the initial exercise had concluded and, as such, all of the studies referred to had been completed. Will the Minister explain exactly what the Prime Minister saw, given that the Department does not have the studies, and could the studies—as referred to, perhaps, in the initial exercise, and as shown, I suspect, to the Prime Minister—be released to the Select Committee today?

Steve Baker Portrait Mr Baker
- Hansard - -

The hon. Lady is conflating various terms. There is certainly a sectoral analysis; what there is not is a quantitative impact analysis forecasting the future. It might help the House if I repeat what I said earlier. The analysis thus far has been a wide mix of qualitative and quantitative analysis, contained in a range of documents developed at different times since the referendum. The analysis examines the nature of activity in the sectors and how trade is conducted with the EU currently in those sectors, and in many cases it considers the alternatives after we leave, as well as looking at existing precedents.

Peter Bone Portrait Mr Peter Bone (Wellingborough) (Con)
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The House has clearly voted for these papers to be released. My Whips advised me not to vote against that, so they have to be released. The Minister is trying to be helpful in providing additional information. I would say to him that that is not what the House requires. It requires lots of cardboard boxes with the information to be dumped on the Select Committee for it to look at. The Select Committee will then decide what, if anything, should be published.

Steve Baker Portrait Mr Baker
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I am very grateful indeed to my hon. Friend, but I would say to him that the information we have includes commercially sensitive information, information that is material to our negotiating capital and advice to Ministers. The House must be very careful not to establish precedents that it could regret in due course.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
- Hansard - - - Excerpts

The Minister’s explanation for the delay is laughable and was not used in rejecting my freedom of information request two weeks ago. His explanation smacks of cover up and smokescreen. He questioned which side the Opposition were on. We are on the side of the public. When he deigns to publish these reports, will he also publish a report that the public can have, setting out precisely the cost of the Brexit that he so enthusiastically endorses?

Steve Baker Portrait Mr Baker
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As I have not ceased saying, we are not in possession of quantitative studies forecasting the impact of leaving the EU. What the public deserves is to have this House pull together to deliver a successful result, which requires us to maximise our negotiating capital by not releasing information that would be prejudicial to the future of the country.

Mike Wood Portrait Mike Wood (Dudley South) (Con)
- Hansard - - - Excerpts

Although these analyses do not contain sectoral impact assessments, they may contain sensitive and confidential information, so will the Minister engage with the Chairman of the Select Committee to ensure that the information in these reports is handled appropriately with the public and the Committee?

Steve Baker Portrait Mr Baker
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As I understand it, a meeting has already been arranged between the Secretary of State and the Chairman of the Committee to do just that.

Baroness Hoey Portrait Kate Hoey (Vauxhall) (Lab)
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I am sure that the public will, on the whole, use common sense and agree that this timing is reasonable. May I ask the Minister to make it very clear that, whatever is in these documents that we will be sitting up all night to read when they are published, it will make no change whatever to the policy of this country—that we are leaving the European Union, the single market and the customs union?

Steve Baker Portrait Mr Baker
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I am very grateful to the hon. Lady, and I agree with her. The Government’s policy follows naturally from the UK’s democratic decision to leave the European Union. We will take back control of our laws, our borders, our money and our trade policy, and I am confident that we will make a success of it.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
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Mr Speaker, you have said that this particular question should focus on the issue of when, and the Minister has said within three weeks. During that period, the Select Committee will be able to have a proper debate about what exactly we want to see and in what format. Those of us who are going to Brussels this afternoon will have the chance to ask Mr Verhofstadt what plans the European Union Parliament has to make the same demands to the European Union Commission, and to ask Monsieur Barnier what plans the Commission has to provide the same answers to the same demands. Surely there is no one in this House who would want to see us publish information that would damage this nation in negotiations with another party.

--- Later in debate ---
Steve Baker Portrait Mr Baker
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I am grateful to my hon. Friend, and I agree with what he said.

Wes Streeting Portrait Wes Streeting (Ilford North) (Lab)
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It really is a bit rich for those on the Government Benches to ask which side we are on when this whole exercise from start to finish has been one of party political management over the national interest. The question is: party interest or national interest—which side are they on?

On the specific issue of timing, I am on the side of British businesses, which have warned the Treasury Committee that, before Christmas, some sectors will have to take potentially irreversible decisions. That position worsens in quarter one of next year in major sectors of our economy. Is three weeks really a reasonable delay? What can possibly be a reasonable explanation for such important and critical information not to be held in a way that is readily available and readily understood?

Steve Baker Portrait Mr Baker
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The hon. Gentleman refers to an exercise in party management, but I have to tell him that, over the past two years, I have very much enjoyed working with members of Labour leave—and, indeed, Liberal leave. Right across this country, people of every party allegiance have wanted to resolve this question. He refers to businesses: of course, we continually engage with businesses—indeed, I met representatives of the chemical sector yesterday. He asks whether three weeks is reasonable. The answer is yes, for the reasons that I have given.

Tom Pursglove Portrait Tom Pursglove (Corby) (Con)
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Given all the outrage that we are hearing in the Chamber today and further to the question of my hon. Friend the Member for Gloucester (Richard Graham), is my hon. Friend aware of any requests from the Opposition for those EU sectoral documents?

Steve Baker Portrait Mr Baker
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No, I am not aware of any such request.

David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
- Hansard - - - Excerpts

The Minister confirmed in a response to me on 13 September that the Department had the analyses. He has confirmed today that he has seen the analyses. He then said that there is no quantitative work that casts its eye into the future. The question in response to that is: why has that work on such a critical issue not been done by his Department? He has not explained that. Surely he is in contempt of the House and we should repurpose the Tower to accommodate him and his Department heads.

Steve Baker Portrait Mr Baker
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I refer the right hon. Gentleman to a range of answers that I have already given.

Mims Davies Portrait Mims Davies (Eastleigh) (Con)
- Hansard - - - Excerpts

The Minister has confirmed that the sectoral analyses will need to be released in relevant time and will need to have the correct information. Does he agree that resolving this matter to the satisfaction of the whole House and this country is most important and that long-term damage to the UK is certainly what nobody should be seeking?

Steve Baker Portrait Mr Baker
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As I have said during the course of this debate, members of the Government are parliamentarians first and we do wish to satisfy the House. I say to my hon. Friend that our first priority as a Department is securing the long-term future of this country, and it is to that end that we will bend all our work.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
- Hansard - - - Excerpts

Does the Minister recognise that, with his statement today, he really has turned farce into a new art form? When he asks what side we are on, I say that we on the Opposition Benches are on the side of the 29 million workers whose livelihoods absolutely depend on the impact of Brexit on the UK economy. Will he recognise that he is treating not only this House but the British public with contempt?

Steve Baker Portrait Mr Baker
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I will tell the House what is turning farce into an art form: it is blogging about the Greek debt crisis under the hashtag #thisisacoup and then supporting our continued membership of the European Union, as the hon. Lady has done. That is what takes the public for fools. I say to her that we are all on the side of the British public. The UK took a democratic decision to leave the European Union, and we will now carry through that decision.

Michael Tomlinson Portrait Michael Tomlinson (Mid Dorset and North Poole) (Con)
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When these documents are released as a result of the Opposition day motion, a cheap asset will have been handed to our negotiating partners within the EU. When the Minister implements the motion of this House, will he take as much time as is necessary to ensure that at least he and the Secretary of State continue to act in the national interest?

Steve Baker Portrait Mr Baker
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We will continue to act in the national interest as we seek to satisfy the House and this motion. It is to that end that the Secretary of State will be meeting the Chairman of the Select Committee.

Louise Ellman Portrait Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
- Hansard - - - Excerpts

People are increasingly concerned about jobs and the national health service. The Minister has given some very confusing information in his answers today. Who will be the censor of what MPs and the public are allowed to know about these issues of national importance?

Steve Baker Portrait Mr Baker
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This Government have a proud record on jobs and on the NHS and we will continue to give both issues the first importance.

Matt Warman Portrait Matt Warman (Boston and Skegness) (Con)
- Hansard - - - Excerpts

My constituents, more than most, want the Government to get on with delivering Brexit. They told me that they were saddened that this House had voted as it did because it does not help our negotiating position. What they would like this House and the Minister’s Department officials to get on with doing is negotiating the best possible deal rather than spending time facilitating the whims of this House. [Interruption.]

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

Order. There is a very unseemly atmosphere in the Chamber. I understand the rising passions on the subject, but, as colleagues will know, I regularly visit schools across the country and conduct Skype sessions with school students. One of the most frequent questions put to me is: why do people feel the need to bawl at each other? We should set a better example to the next generation of leaders.

Steve Baker Portrait Mr Baker
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I listened carefully to my hon. Friend and I say to him that officials and Ministers will have to spend some time on this work over the next three weeks, which will of course distract them from the negotiation. That is regrettable, but we take seriously the motion that the House has passed and, in the way that I have set out, we are seeking to comply with it.

Jack Dromey Portrait Jack Dromey (Birmingham, Erdington) (Lab)
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This is outrageous! Whose side are we on? We are on the side of the truth being told; we are on the side of the British people; we are on the side of British business; we are on the side of British workers. Is it not the case that the Minister is simply making it up as he goes along, and treating Parliament and the people of Britain with utter contempt?

Steve Baker Portrait Mr Baker
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No, that is not the case.

Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab)
- Hansard - - - Excerpts

Is the Minister forgetting that, this time in one week, we will have 300 or 400 amendments before the House? Does he believe that this is a good way to start the Committee stage of European Union (Withdrawal) Bill?

Steve Baker Portrait Mr Baker
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I am very conscious of the European Union (Withdrawal) Bill coming forward, and I would like to begin Committee stage in a positive spirit of collaboration in order to deliver in the national interest. I have sought today to give straightforward answers to the questions that we have been asked, and I stand by what I have said.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
- Hansard - - - Excerpts

This is turning into the Government equivalent of the dead parrot sketch. The Minister says that releasing the information could compromise the Government’s negotiating position, yet he could not be bothered to turn up to the House to vote the motion down. The Secretary of State for Scotland said at Scotland Office questions just last Wednesday that a sectoral analysis of Brexit’s impact on Scotland’s economy existed and had been shared with the Scottish Government. Does it or does it not exist? When will the Minister release that information?

Steve Baker Portrait Mr Baker
- Hansard - -

As I have said throughout the urgent question, we are not in possession of quantitative forecasts of the impact of Brexit. We are in possession of sectoral analysis, and we will work on that to satisfy the motion.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
- Hansard - - - Excerpts

It is very simple. Parliament has told the Government to hand over the documents to the Select Committee. The Government accept that the resolution of the House is binding and that they will have to do that. They accept that the things exist because the Minister says that he has read them all and that the Prime Minister has read their outlines. It is very simple: the Minister has to hand them over to the Committee in a timely fashion. However, he seems to think that, in the meantime, he can rewrite them all because they are not good enough. That is not good enough. It is all very well for him to smirk and sneer at our patriotism, but if he holds the House in contempt, he holds the British public in contempt.

Steve Baker Portrait Mr Baker
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There is no question of our holding the House in contempt. We are seeking earnestly to deliver to the House what has been requested. I say again that I have read the initial analysis, which Departments conducted at the beginning of our Department’s work. It is necessary to hand to the Select Committee not out-of-date, multiple documents produced at different times that are not representative of our latest thinking. We will therefore bring together the right information to provide to the Select Committee.

Mike Gapes Portrait Mike Gapes (Ilford South) (Lab/Co-op)
- Hansard - - - Excerpts

Listening to the Minister and his slippery evasions makes me question why the Department and he as a Minister exist at all. What is the point of the Department if it is not doing its job?

Mike Gapes Portrait Mike Gapes
- Hansard - - - Excerpts

I am happy to withdraw, Mr Speaker.

Steve Baker Portrait Mr Baker
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Mr Speaker, I am most grateful. I reiterate that I am confident that I have answered those questions directly. The purpose of our Department is to deliver a successful exit from the European Union. I know that the hon. Gentleman nobly opposes that cause, as he has long done, but I have to say to him that we will continue to work with all our might to deliver a successful exit from the EU that works for everyone.

Clive Efford Portrait Clive Efford (Eltham) (Lab)
- Hansard - - - Excerpts

The quantitative assessment that counts is that of the British people. They determined at the general election that the Conservatives should not have an overall majority in this House. That is why a majority of this House demanded that the Minister make the documents available to the Select Committee. It is not beyond the Minister’s wit to negotiate with the Select Committee Clerks how confidential information may be handled and kept confidential. He should proceed on that basis and negotiate the handling of the documents. Exactly what does he fear that Select Committee members will do with the confidential information?

Steve Baker Portrait Mr Baker
- Hansard - -

As I explained earlier, I understand that the Secretary of State has made arrangements to meet the Chairman of the Select Committee to discuss those matters.

Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
- Hansard - - - Excerpts

We are currently fighting for the survival of the Vauxhall car plant in my constituency. I am working with the local enterprise partnership and others to come up with a plan for the future. Of course, Brexit is a huge part of that. Will the Minister share as much as he can as soon as he can with my LEP of any impact analysis he has seen for the automotive sector?

Steve Baker Portrait Mr Baker
- Hansard - -

We would like to get on with delivering the best possible deal for the hon. Gentleman’s constituents and the whole country. That is why we have constantly sought to get on to talking about the future relationship. I undertake to visit that plant with him as the business of the House allows.

James Frith Portrait James Frith (Bury North) (Lab)
- Hansard - - - Excerpts

We are seeing astonishing, dizzying theatre from the Government. We have had all sorts of Brexit before us: we are now seeing “improv Brexit”—improvising, making it up as they go along, with no tangible appreciation that, away from here, Brexit is playing out in everyday lives and there is a thirst for practical guidance. Three weeks feels like enough time to make it up, from “We shall not publish” to “It is not the case that these documents exist”. What does the Government’s quantitative analysis actually quantify?

Steve Baker Portrait Mr Baker
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As I said in answer to a previous question, the quantitative analysis in the documents that we have and that I have studied reflects conditions at the time they were written.

European Economic Area: UK Membership

Steve Baker Excerpts
Monday 6th November 2017

(6 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Steve Baker Portrait The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Steve Baker)
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I congratulate the hon. Member for Aberavon (Stephen Kinnock) on securing this debate on the European economic area and matters related to it. It has been an exceptionally vibrant debate, which is reflected in my time running extremely short as I rise to sum up.

The EEA agreement entered into force on 1 January 1994 between the European Community, as it was, and members of the European Free Trade Association. The agreement has the effect of extending the internal market of the EU to three European Free Trade Association members: Iceland, Liechtenstein and Norway. The fourth current EFTA state, Switzerland, rejected EEA membership in a referendum in 1992.

The territorial extent of the EEA has changed over time, with all new countries joining the EU obliged to become signatories to the EEA agreement. A number of countries have joined the EU from EFTA, including Denmark and the UK in 1973, Portugal in 1986, and Austria, Finland and Sweden in 1995. Neither EFTA nor the EEA were designed to facilitate exit from the European Union. Indeed, EFTA and the EEA have been conveyors to EU membership, interrupted by referendums in the two largest remaining EFTA states. I mentioned Switzerland’s rejection of the EEA in 1992; Norway rejected EU membership in 1994.

As we look to the future, we value our relationships with EEA and EFTA states, and we will continue to do so after we leave the European Union. We have made it clear that our offer to the EU on citizens’ rights also applies to the EFTA countries. We are talking with the three EEA-EFTA countries and Switzerland to ensure that there is continuity, recognising the need to promote stability for businesses and individuals from and within those countries.

The motion that we have debated today claims that

“for the UK to withdraw from the European Economic Area…it will have to trigger Article 127 of the EEA Agreement”.

As I said in a written answer on 12 September, when we leave the EU, the EEA agreement will no longer operate in respect of the UK. The UK is only a party to the EEA agreement by virtue of our EU membership, so the Government’s legal position is clear: article 127 does not need to be triggered for the agreement to cease to have effect when we leave the EU.

We have explained our policy repeatedly. The Under-Secretary of State for Exiting the European Union, my hon. Friend the Member for Worcester (Mr Walker), said in answer to a written question on 17 October that

“the European Economic Area Agreement will no longer operate in respect of the UK”

when we leave the EU. Prior to that, the Secretary of State said in response to the hon. Member for Aberavon on 7 September:

“The United Kingdom is a party to the EEA agreement in its capacity as an EU member state, so on exit day the EEA agreement will cease to operate in respect of the UK.”—[Official Report, 7 September 2017; Vol. 628, c. 285.]

Finally, my right hon. Friend the Prime Minister confirmed to the House as early as March that our participation in the EEA is linked to our EU membership.

It is not only the Government who have made that clear. The man who led the European Council’s legal service for 22 years, Jean-Claude Piris, wrote in an article in September that the UK

“will automatically cease to be an EEA member when leaving the EU.”

He added:

“Neither the EU, nor its current 28 member States, are members of EFTA. After Brexit, the UK, not being a member of EFTA, and not anymore an EU member, could not be an EEA member”.

The president of the EFTA court, Dr Carl Baudenbacher, who has been quoted a number of times today, has also explained that the UK will lose EEA membership automatically when we leave the EU:

“A State can only be an EEA Contracting Party either qua EU membership or qua EFTA membership.”

On the fundamental premise of today’s motion, there is a clear consensus that the EEA agreement will cease to operate automatically in respect of the UK when we leave the EU.

The second part of the motion calls on the Government

“to provide time for a debate and decision on a substantive motion on the UK’s continued membership of the EEA”.

I welcome the opportunity we have had today to debate the EEA. A further debate is unnecessary. In addition to today’s debate, as has been mentioned, amendments have been tabled to the European Union (Withdrawal) Bill. It remains to be seen whether the House will turn to those in Committee.

As the Government have made clear, when we leave the EU, we will leave the EU’s internal market. We will not seek to become signatories to the EEA agreement. Acceding to the EEA would guarantee a bad outcome for the UK. As hon. Members know, the EEA agreement covers the four freedoms: the free movement of goods, services, persons and capital. We have listened to EU leaders, and we understand and respect their position that the four freedoms of the single market are indivisible and that there can be no cherry-picking. The democratic decision of the people of the UK means that we cannot accept all the obligations of the EU internal market, so things will be different when we leave.

European economic area membership would mean the UK having to adopt at home, automatically and in their entirety, new EU single market rules in order to maintain market access—rules over which we will have little influence and no vote. Such an absence of democratic control would not be viable for the people and businesses of the UK. I share the concerns of my right hon. Friend the Prime Minister that EEA membership would inevitably lead to friction and a damaging reopening of the nature of our relationship in the near future. That would be exceptionally undesirable.

Whether the EEA is right for the EEA-EFTA states is a matter for them; I say only that it would not be right for the UK, which is quite different from the EFTA states. Norway’s population is 5.26 million and Switzerland’s is 8.42 million. There are more than 8.5 million people in Greater London alone. Iceland’s population of 338,000 is comparable to that of the great city of Coventry. Liechtenstein’s population of something over 37,000 is about half the number of electors in the Wycombe constituency.

Those of us who care about the future prosperity of the UK cannot allow our country to be shoehorned into a position of permanent rule-taking, with the inherent considerable risks of major harm to our economy. Our task is to find a new way to work together in partnership with the countries of Europe, recognising that our rights and obligations in relation to the EU have changed. However deep our love for the EEA states, it cannot be said that they are comparable to the UK either in population size or economic structure. I have no hesitation in saying that that the EEA would not be right for us, even if it may be right for them.

The Government will seek a unique and ambitious economic partnership with the EU, based on our rules and regulations being the same at the start and on maintaining our commitment to free trade and high standards, while allowing for us both to make changes where we want to. When we leave the EU, we will no longer be part of the EEA.