European Union (Withdrawal) Bill

Tom Brake Excerpts

Committee: 2nd sitting: House of Commons
Wednesday 15th November 2017 Commons Chamber

[Matthew Pennycook]

I agree with that, and I agree—I think this was also my hon. Friend’s point—that the public will expect these rights to continue to have the protection they have enjoyed while being underpinned by EU law. These rights should not have a reduced level of protection in the future.

[Tom Brake (Carshalton and Wallington) (LD)]

rose—

[Sir William Cash]

rose—

[Matthew Pennycook]

I will make a little more progress if that is all right.

Let me remind the House of the sentiments on the Government Benches when it comes to workers’ rights. Throughout the referendum, prominent leavers drew attention to what they claimed was the high cost of EU employment regulations, including those such as the working time directive and the temporary agency work directive. Prominent members of the Cabinet are on record as having called for workers’ rights to be removed. For example, the Foreign Secretary has written that we need

“to root out the nonsense of the social chapter—the working time directive and the atypical work directive and other job-destroying regulations.”

During the referendum, on 18 May 2016, the then Minister for Employment, the right hon. Member for Witham (Priti Patel), went so far as to call for the UK to

“halve the burdens of EU social and employment legislation”

in the event of Brexit. The newest member of the Brexit ministerial team—Lord Callanan—has openly called for the scrapping of the working time directive, the temporary agency work directive, the pregnant workers directive and

“all the other barriers to actually employing people.”

Just this week, the hon. Member for North East Somerset (Mr Rees-Mogg) made a speech in London calling for, among other things, deregulation. It was retweeted and then hastily deleted, as we heard yesterday, by the Department for International Trade.

[Tom Brake]

I wonder whether the hon. Gentleman is about to quote Mr Dyson. When leave supporters wanted to quote a business, it was usually Mr Dyson’s or JCB. Now that Mr Dyson welcomes the fact that leaving the EU means he will be able to hire and fire people more easily, I wonder whether they will quote him quite so often.

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[Priti Patel]

My hon. Friend makes an important point.

One great former leader, Margaret Thatcher, once said:

“What is the point of trying to get elected to Parliament only to hand over…the powers of this House to Europe?”—[Official Report, 30 October 1990; Vol. 178, c. 873.]

We now have the chance to move in the right direction, and to deliver on the will of the British public through the mechanisms available to us and following the scrutiny we are carrying out in this House of Commons. Importantly, we can also look at how we can make better and more effective laws. We have very clearly heard from the Solicitor General how we will be proceeding with the right approach, and how we will develop high standards that are in our national interest.

[Tom Brake]

The right hon. Lady is clearly very keen that Members should scrutinise things effectively. Does she therefore agree with me that the Government should not allow new agencies to be set up, or the role and responsibilities of existing agencies to be changed, through secondary legislation, because such things should be done through primary legislation?

[Priti Patel]

The right hon. Gentleman knows that secondary legislation is scrutinised. We all have an effective role—I am sure he has experienced this many times while he has been a Member—in scrutinising secondary legislation.

We will have the opportunity to make and amend laws, and also to look at what will work in our national interest. Quite frankly, I take great pride in that as a Member of this House of Commons. I take great pride in taking part as a British citizen, in this British Parliament, in standing up for our national interests on the laws and decisions made for our country.

Of course, that means not that we will cut or axe regulations arbitrarily, but that we have the ability over time to look methodically at our laws and how to change them and, in particular, at how to make them reflect modern challenges in ways that are most effective for our economy, our country and our future prosperity, and that applies to every aspect of policy.

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[Anna Soubry]

The hon. Lady may well be right. I am trying to find solutions. I am trying to find a way to get the best solution for everybody in our country, while putting the economy at the heart of this.

The joy of remaining in the EEA, and indeed in EFTA, is that it is a model sitting on the shelf that can be taken down, dusted off and perhaps tweaked here and there. The benefit for the great British people is that—hallelujah!—the job will pretty much be done, and it will enable our Government to get on with the great domestic issues that we must address. It certainly means there will be a “Hoorah!” right across businesses in this country, because it will give them the certainty and the continuity for which they are desperate, and it will deliver economic benefits. There is not much else to say, but if it is pressed to a Division, I will certainly vote for new clause 22.

[Tom Brake]

There are certainly several amendments in the group that I will support, if they are pressed to a Division. I very much welcome new clause 55, which was tabled by the right hon. and learned Member for Beaconsfield (Mr Grieve) and relates to enhancing scrutiny. That is clearly something that we need, as it was much debated on Second Reading, and is now being discussed in Committee. If new clause 22, which was tabled by the hon. Member for Lewisham East (Heidi Alexander), is subject to a vote, we will certainly support that.

I welcome the return of the right hon. Member for Witham (Priti Patel), who is clearly making herself the standard bearer for Brexiteers on the Back Benches. I am sorry that she is no longer in the Chamber, but she said in her speech that Brexit was not about cutting regulations. However, that does not quite sit with what she has said previously about Brexit being an opportunity for widespread deregulation. I am afraid I must ask why we should believe what Government Front Benchers are now saying about their intentions when many members of the Cabinet, Ministers and Back Benchers are on record as stating very clearly that Brexit will provide opportunities for deregulation. Members will be pleased to hear that I will make only some brief remarks.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I seem to recall it was not so long ago that the right hon. Gentleman was in a coalition Government in which my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) insisted that we withdrew two regulations for every new one that we introduced. Does not that make the right hon. Gentleman a regulation cutter, like the rest of us?

[Tom Brake]

I remember that clearly. The right hon. Gentleman and I—and, I am sure, Labour Members—can confirm that there are regulations, such as those relating to the British Government’s role in running the railways in India, that it would be appropriate to get rid of, because frankly they are no longer relevant. I suspect that there are quite a lot of other examples.

I want to focus briefly on the EEA. At the start of the referendum campaign, those involved in the leave campaign advocated the Norway model. As it became clearer to them that that was not what they wanted, they moved on to the Switzerland model, with its 150 or so different agreements. Once they realised that that was quite complex, Peru emerged as the model they wanted to emulate, before they eventually settled on the idea of a bespoke deal. As we heard earlier, no one anywhere is willing to identify how such a bespoke deal would work or, indeed, whether it is even possible to put one together.

As other Members have said, it is clear that membership of the EEA does not in any way, shape or form match the benefits we get from being members of the European Union. It might provide an alternative—a step down from our current position, but without the consequences of our leaving completely—to the no-deal scenario. It is a poor substitute, but it is better than no deal. It would keep us in the single market but out of the customs union, and—this major sticking point was, I think, the reason why the leave campaign moved away from the Norway model—it would probably require a financial contribution. It would allow trade deals to be struck, so there are some advantages to it, which is why we will support new clause 22 if it is pressed to a vote.

I want to finish by focusing on the question of whether leaving the European Union automatically means that we also cut our links with the EEA. Articles 126 and 127 of the EEA agreement have already been mentioned. I have been involved in an interesting exchange of parliamentary written questions and answers about the EEA. When I asked what was required to formally withdraw from the EEA agreement, the parliamentary answer stated:

“As the Secretary of State for Exiting the European Union said when he addressed the House on 7th September, there is agreement that when we leave the EU, the European Economic Area Agreement will no longer operate in respect of the UK.”

I followed that up by seeking to identify who that agreement was with and why that would happen. The response stated:

“It is Government policy that we will not be a member”,

so it seems as though the Government have reached an agreement with themselves that we will automatically be out of the EEA. I would suggest that that is not a particularly high bar. Although article 126 makes it clear that we will leave the EEA, article 127 requires us to give notice in order to do so.

As an aside, if we are leaving the EEA, it would probably be courteous for the UK Government to at least talk to its other members, particularly EFTA members, just so that they are aware that that is what we are doing. As of last week, no contact had been made with at least one of the EFTA members. It might be appropriate for the Government to inform them as a matter of courtesy.

New clause 22 is very good, as it would provide us with an opportunity to keep some of the benefits of our EU membership without crashing out of the EU completely, and without seeking the mythical bespoke deal that I do not think anyone believes can be delivered in the timescales that the Government have to work towards. I look forward to the vote on that new clause.

[Alex Cunningham (Stockton North) (Lab)]

I want to speak to new clause 58 and to cover the key issue of EU pension directives, specifically versions one and two of the institutions for occupational retirement provision directive.

Both versions set out the broad framework for pension fund operation in the EU, concentrating on structures and procedures such as the separation of the fund from the employer, giving strong protection for scheme members, and the establishment of a regulator in each member state. My concerns relate to the effect of IORP II on the running of pension schemes and the Government’s approach to the requirement for legal separation of a pensions institution from the sponsoring employer under article 8 of the directive, and to investment regulations under article 19 that require assets to be invested prudently in the best interest of scheme members, and for any potential conflict of interest to be resolved in the member’s favour.

Principally, I seek an assurance that the Government will introduce legislation for the transposition of IORP II and that they will not seek to opt out of any of the relevant articles but implement them in full. That is particularly important for members of the local government pension scheme, as there remains some confusion in the public domain over whether IORP I was ever applied to it in full.

When IORP I is succeeded by IORP II, the Government could disapply any requirement for separation, as well as any requirement for investment in accordance with a “prudent person” rule. What lies at stake here are the statutory rights of more than 5 million citizens who participate in the UK local government pension scheme. They should not be undermined by virtue of past decisions, or indeed as a result of our leaving the EU. This is made even more important by the proximity of the deadline for IORP II to the date of exit from the EU. I hope that Ministers will confirm that the Government will ensure the necessary measures—articles 8 and 19—are enshrined in UK law.

I now turn to the state pension. As a result of our EU membership, the UK is part of a system to co-ordinate the social security entitlements of people moving within the EU. That system enables periods of insurance to be aggregated, meaning that an individual who has worked in other member states can make one application to the relevant agency in the country of residence. In the UK, that is the International Pension Centre. That relevant agency then notifies details of the claim to all countries in which the person has been insured, and each member state calculates its pro-rata contribution and puts that amount into payment.

The UK state pension is payable overseas, but it is uprated only if the pensioner is in an EEA country, or one with which the UK has a reciprocal agreement for uprating. In September, the Government suggested that reciprocal arrangements would be protected following exit from the European Union, and that is also included in the joint paper on citizen’s rights. Will Ministers confirm that that will continue to be the case, and that the Government will not be seeking to enter individual reciprocal arrangements after our exit from the European Union, but will instead continue to work on the basis of current arrangements?

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[Zac Goldsmith]

I could not agree more with my hon. Friend. In one of his interventions, the Secretary of State said that nature by definition does not have a voice and that it is our job to give nature a voice. That is what we will do if we create an appropriate institution. I am absolutely committed, as my hon. Friend is and as many Members on both sides of the Committee are, to work together to get a world-class body to ensure that nature has a voice and that the Government can be held to account. That is what we must do and will do.

[Tom Brake]

Returning to the possible trade deal with the US, the Americans have already said that a condition of doing a trade deal with the UK is that we do not sign up to the EU’s animal welfare standards.