Leaving the EU: Data Protection

Wera Hobhouse Excerpts

Thursday 12th October 2017 Commons Chamber

[Stephen Kerr]

That is the worse-case scenario of being on the receiving end of a flow of regulation with no input or influence over that at all. No, leaving the European Union means leaving the single market and the customs union.

[Wera Hobhouse (Bath) (LD)]

Does the hon. Gentleman not agree that leaving the single market and the customs union was not on the ballot paper when the British people voted?

[Stephen Kerr]

I do not think that there is much virtue in rerunning the Brexit debate today, when we are discussing data, but I will say that it was well rehearsed, especially by the remain side, that leaving the European Union meant leaving the single market.

I am grateful for the opportunity to make a short contribution to this debate, and I do so from the perspective of having spent the past 30 years of my life in the world of sales. I should declare at the outset that I am a fellow of the Association of Professional Sales, a UK institution with a fast-growing global reputation. Its primary purpose is to raise the standard of sales professionalism, ethical sales conduct, and the overall talent and capability of sales professionals.

I recognise that this debate is about data protection as we leave the European Union, but let me be absolutely crystal clear: I am optimistic about the future of our country outside the European Union. I am not blind to the challenges that lie ahead, but I encourage Opposition Members who have a decided propensity to take a dim view of our future to brighten up. We have a great deal going for us in this country, and rather than cowering at the prospect of a global Britain, we should now embrace the opportunity.

So much of our national sales capability, which will be key to our global success, will hinge on our commitment to embracing new technologies. We in this country are driving the fourth industrial revolution, and I want our country, by which I mean—before my SNP colleagues shout, “Which country?”—the United Kingdom and Scotland—

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[Vicky Ford]

My hon. Friend is spot-on correct. We need not only to get things right and workable on the day of exit, but to maintain an ongoing relationship. As the Prime Minister has said many times, we are not leaving Europe; its countries will remain our closest neighbours and currently account for nearly half our trade. Ongoing co-operation on issues such as data protection is not only vital for our future but will help us to continue to lead the global dialogue in this policy area.

Some people seem to think that European politicians want no deal; I do not believe that to be true. From the conversations I have had, I believe that the vast majority of politicians throughout Europe want an ongoing, deep, bespoke partnership with the UK, and data is just one of the many areas in which they want that. Just this morning I welcomed to the House a colleague from the European Parliament: the Spanish lady MEP who helped me to deliver, through the EU, the end of mobile phone roaming charges. She is a leading light in digital policy and an excellent ally on digital issues. She explained to me how right now, throughout Europe, they are looking at the free flow of non-personal data. The UK called for legislation in this area, and Europe is now delivering. The leadership on the issue in the European Parliament has just been allocated to a member of the European Conservatives and Reformists—the Government’s European sister party.

We continue to want to lead and work on these issues, not only up to the time of Brexit but in co-operation thereafter. I say again: crashing out of Europe with no deal will not be good for the UK or for Europe, and it is not what the vast majority on this or the other side of the channel wants.

[Wera Hobhouse]

I was in Brussels a couple of weeks ago, and as much as it is true that our European partners would like a deal, they are perplexed by the attitude of the British Government, who simply do not enter into proper negotiations.

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[Wera Hobhouse (Bath) (LD)]

I congratulate the hon. Member for Warwick and Leamington (Matt Western) on his excellent maiden speech. What an honour it must be to represent such a happy, diverse and—may I say?— sensible community. No deal, no way. I completely agree. His constituents seem to be much more clear-sighted than some Members on the Government Benches. May I remind the Government to start taking the Brexit negotiations seriously? May I also remind the Government that the British people deserve the right to have their personal data protected, both here in the UK and cross-border? As we have heard today, there are many complications post Brexit.

The cross-border general data protection regulation will be brought in by the EU and be applicable here in the UK in May 2018, but there is no clarity on how data protection will be regulated in post-Brexit Britain. That is entirely a matter for the phase 2 negotiations and we have not even started them. Business needs clarity. Data protection regulation is a vital issue for the technology sector. This will affect the sector in every way, whether it is for individuals buying something online or logging on to Facebook, or for large companies operating internationally. As we have also heard today, the tech sector is one of the UK’s success stories. It provides 10% of our GDP, 24% of our exports and over 3 million jobs.

Data protection is central not just to the tech sector but to our whole economy. Any business of any size needs to be able to transfer data across borders safely. If we leave without a deal on data protection, British businesses will not be able to operate internationally. So much for the Government’s vision of a global Britain! We have already seen how Brexit is beginning to damage the economy. The uncertainty facing the tech sector is just another example of how serious a no-deal scenario would be for the whole economy. Conservative Members cannot claim to be the party of business if they can seriously say that no deal is better than a bad deal—no deal is the very worst deal possible.

The Government say they will negotiate an adequacy agreement or even an enhanced agreement, but as we see time and again, what they say they will get and what they actually achieve are often very different things. While the EU general data protection regulations will come into effect in 2018—before we leave—the European Commission will still have to agree that the UK is providing adequate data protection after we leave. A few years ago, however, the European Court of Justice deemed aspects of the UK’s Data Retention and Investigatory Powers Act 2014 as illegal. Ironically, the case was brought to the ECJ by the right hon. Member who is now the Secretary of State for Exiting the European Union.

That demonstrates that the UK has a history of failing to comply with EU data protection laws. Once outside the EU, the Commission will regularly review whether it thinks UK data protection regulations are acceptable. We will have to agree with its regulations, which are under ECJ oversight, but without having a say over them. That will be the reality post Brexit, and it is important that we all come to terms with it. Frankly, I doubt whether the Government in the Brexit negotiations will even get to the issue being discussed today. This week has been full of talk of no deal. The clock is ticking, and as we heard today, the negotiations in Brussels are deadlocked. It is for the Government to unlock that deadlock. The Prime Minister has the cheek to say the ball is in the EU’s court. I say that the Government have failed even to pick up the racket, let alone hit the ball over the net.

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[Matt Hancock]

The hon. Gentleman speaks like a true lawyer. The hon. Member for Cardiff West said that the hon. Gentleman had been outed as a lawyer during this debate—my goodness, he outs himself as a lawyer from the first moment he strikes his posture in this Chamber. He is obviously a lawyer and that latest point only proves it further. The ICO has already said that, and it is well worth reading the Information Commissioner’s Cambridge speech from a couple of months ago, which set out that reassurance. The hon. Gentleman asked about timing and complained about there not being an agreement already. We want to get on and discuss the future relationship, and the Government have made that clear; it is the European side that is blocking progressing on to the future relationship. I hope that we can get on and discuss it forthwith.

[Wera Hobhouse]

As I have said, we have been in Brussels and heard time and again from different sides that it is up to the UK Government to break that deadlock. There are two issues where they are free to break it; this is particularly the case on the money issue, but Government Members do not want to face that, because even a penny to pay in compensation or in the divorce bill will not be good enough. That is why we are in deadlock and we cannot move on.

[Matt Hancock]

The hon. Lady is wrong about that. She is also wrong to have said that there is no certainty about the future UK data protection arrangements, because there is and we are putting it into law: it will be the GDPR, plus the Data Protection Bill, which is before the other House. Although she was completely wrong, I am grateful for her intervention.

This has been a very productive debate and I am grateful for the largely very well-informed and detailed discussion, all of which has been good natured. I look forward to continuing this over the months ahead. There is a shared mission in this House to have a high-quality data agreement with the European Union to make sure we have high-quality data protection and the free flow of data. I hope I have given assurances about the actions we are taking to deliver that and to support the digital economy, through Brexit and beyond.

Question put and agreed to.

Resolved,

That this House has considered Exiting the European Union and Data Protection.