Customs Miscellaneous Non-fiscal Provisions and Amendments etc. (EU Exit) Regulations 2020
Baroness Ludford Excerpts(5 years ago)
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Baroness Ludford (LD) [V]
My Lords, I come to this subject with some degree of trepidation, because although I have focused for many years now on the overall shape of the UK-EU relationship, I am no expert on either trade processes or Northern Ireland. But I do know that there has been a great deception: the pretence that the EU ease-of-trade cake could be had as well as eaten, and the preposterous notion that leaving the single market and customs union meant a slashing of red tape. For here we are, facing reality—or rather, our benighted businesses face the reality of reams of form-filling, cost and delay. This reality is not “teething problems”; it is, as Michel Barnier reminded us, the new normal.
As my friend in the other place, Stephen Farry of the Alliance Party, said:
“Deeper challenges lie with Brexit itself and the nature of the UK-EU trade deal. They are being manifested across the UK. Northern Ireland is not alone in that respect.”
By that, of course, he means that Brexit entails friction across the UK; there is no escaping that fundamental truth. He went on to say:
“However, there are issues arising from the specific terms of and operational decisions around the Northern Ireland Protocol”,
because the protocol is a much blunter means to address the challenges of intra-UK trade post Brexit than the backstop.
The subject matter of this statutory instrument is paperwork for trade between Northern Ireland and Great Britain. People in Northern Ireland, both businesses and consumers, are suffering from what Ministers like to call “teething problems” but are in fact intrinsic to the arrangements that they have negotiated. Movement of goods across the Irish Sea is subject to red tape— customs safety and security procedures, including, in most circumstances, entry summary declarations, economic operator registration, enforcement powers and penalties for failure to comply—to address the different regimes applying in Northern Ireland and Great Britain. But the Government have behaved badly by not only stalling on a trade deal until 24 December for press management reasons, but denying for so long the reality of the fact that border controls had shifted to the Irish Sea. Because of those two factors, they failed to prepare properly.
Who can forget—the noble Lord, Lord Dodds, reminded us and I will do so again—that, in November 2019, the Prime Minister told businesses in Northern Ireland that they would “absolutely not” have to fill in extra forms, and that if any of them were asked to fill in such paperwork, they should telephone him
“and I will direct them to throw that form in the bin”.
I understand that, even today, Northern Ireland Secretary Brandon Lewis has claimed that empty shelves in Northern Ireland are due to coronavirus challenges, not Brexit. The continued tendency to bluster on this subject is deeply unhelpful. As my noble friend Lady Suttie said on 6 January in a debate on the Trade Bill:
“We are now beginning to see the realities of barriers to trade and of what the BBC has described as the ‘internal UK border’. We are also witnessing the consequences of doing a deal so much at the last minute that proper preparation for the business community in Northern Ireland was not really an option.”—[Official Report, 6/1/21; col. 173.]
The least the Government can do now is TO consult properly, actually listen, and be prepared to amend where they can if mistakes have been made—subject, of course, to the constraints of the withdrawal agreement and protocol and the trade and co-operation agreement.
I will say a brief word about timing. As the noble Lord, Lord Dodds, said, we are told in paragraph 3.1 of the Explanatory Memorandum:
“This instrument is being laid using the urgent procedure under the European Union (Withdrawal) Act 2018. The regulations introduced by this instrument will come into force at the end of the transition period.”
Obviously, they have been in force now for 19 days, so this debate is—how shall I put it?—not before time. The regulations arise solely out of the withdrawal agreement and its protocol on Northern Ireland, but those were agreed almost 11 months before this draft was tabled on 22 December, so why did it take so long?
I want principally to ask about consultation. Section 10 of the Explanatory Memorandum has quite a lot of blurb on the subject, including this:
“Consultation on the practical implications of the Protocol has taken place with businesses. Throughout the transition period, the NI Stakeholder Engagement Team (NISET) have consulted with a wide range of businesses and representative bodies who would be impacted.”
The following paragraphs elaborate. This general assertion may well raise the eyebrows of parliamentarians in both Houses on relevant committees, all of whom have complained vocally about the paucity of consultation over the past year. However, paragraph 10.1 of the Explanatory Memorandum makes the astonishing statement:
“No formal consultation regarding this instrument has taken place.”
In other words, despite the somewhat diversionary wording of the rest of Section 10, the nub is that, on these nuts and bolts, there appears to have been no consultation. Can the Minister tell us why that is so, and what he defines as “formal” in this context? Are the Government in fact saying that no consultation took place at all on the specifics covered by this statutory instrument?
I am afraid that the Government’s attitude is revealed by Section 12 of the Explanatory Memorandum, as also quoted by the noble Lord, Lord Dodds, where it is claimed:
“There is no, or no significant impact on business… The provisions do not introduce any requirement beyond what has already been agreed, or is a necessary consequence of what has been agreed in the Protocol.”
Surely, however, when it comes to trade, the devil is in the detail—otherwise why would there have been such uproar in the last 19 days leading, in the case of Scottish fishermen, to lorries in Westminster? If we are not to end up with the Northern Ireland Secretary blaming Northern Irish businesses for not filling in the right forms, as the Prime Minister has done with regard to exporters from Great Britain, careful consultation is essential.
These regulations are about goods moved from Northern Ireland to Great Britain, but I hope the Minister can tell us how the Government intend to consult properly not only with Northern Irish businesses but with those GB businesses with whom they are trading, and to learn from all their experiences ahead of the end of the three-month grace period, which extends only until the end of March. While the subset of challenges arising from the operation of the protocol, rather than from Brexit itself, relates in large part to very tight timescales for implementation and poor information, there is also a problem of lack of engagement from companies based in Great Britain about trade with Northern Ireland. What preparations are the Government taking now to ensure that current issues and problems do not reoccur after 31 March?
Lastly, can Minister explain how businesses will feed into the complicated and not very transparent governance arrangements for both the protocol and the trade and co-operation agreement, for example in the specialised committee for SPS measures?
In conclusion, Northern Ireland has been described by Professor Katy Hayward of Queen’s University Belfast as,
“this small but fragile region on the periphery of both”,
the UK and the EU. It is incumbent on the Government, for not only economic but political reasons, to take the greatest care not to put any more strain than the act of Brexit already regrettably does on this “small but fragile region”. Given the failure to consult specifically on this instrument, I am not persuaded that the Government are acting accordingly.
I hope that the Minister can give an assurance that, when there are structural problems that can be addressed only through flexible solutions being agreed by the UK Government and EU institutions, the Government will not be shy of arguing for those flexibilities. That does not mean invoking Article 16 of the protocol. Those pushing for such a remedy are offering a populist, ineffective and false solution. No major business organisation in Northern Ireland or beyond is calling for Article 16 on safeguards to be invoked. Outside the protocol, much unfinished business is still to be done to maximise potential to the Northern Ireland economy. The list includes access to EU free-trade agreements, which is particularly important to the agri-food sector; transit from Great Britain to Northern Ireland via the Republic of Ireland; data adequacy; the future of the all-Ireland service sector; and many others. We in my party, with our Alliance friends, will continue to raise these issues.
Lord Tunnicliffe (Lab) [V]
My Lords, I am grateful to the Minister for introducing this instrument, and to other noble Lords who have participated in this debate. As has been noted, the instrument was made in December under the urgent procedure. That is rarely desirable but, as the Explanatory Memorandum notes, it could not be laid until after the Taxation (Post-transition Period) Bill had received Royal Assent. We were all somewhat surprised when the Government announced that Bill at short notice, in a manner that suggested that they had only realised its necessity at the last minute. I hope that the Minister can assure us that, with a UK-EU trade deal now provisionally applied, we will return to the normal ways of conducting business.
While not directly relevant to this SI, conversations with colleagues have alerted me to the laying of other made-affirmative EU exit instruments over the Christmas period. In some cases, they appeared despite strong assurances that the relevant departments had concluded all their so-called day-one critical business well in advance of the House rising. Again, we understand the need of recent times. Going forward, however, we can all agree that fast-tracked primary legislation and the use of made-affirmative instruments should be far rarer than we have become accustomed to. I look forward to hearing the Minister’s thoughts on that.
Turning to the contents of the instrument, the Minister outlined the various changes introduced. They have, of course, now been in force for a little over two weeks. We would not have opposed this instrument had it been laid before Christmas and, given the legal chaos that would have resulted from this SI lapsing in February, we will certainly not do so today. I hope that the Minister can shed a little light on the operation of Regulation 5, which allows penalties to be applied if a business fails to comply with requirements in Regulations 3 and 4. Can he confirm the approach that the Government will take with such penalties? Given the lack of notice that many businesses have had, and the difficulties that some have experienced with the technological side of things, will there be a degree of leniency when determining whether to issue fines? If so, for how long? If not, will any special guidance be issued to those who consider appeals?
It may seem a minor point, but paragraph 3.2 of the Explanatory Memorandum notes that this instrument amends several small errors in the 2019 SI. On the one hand, we are glad that these errors were spotted and corrected before the end of the transition period. However, it is slightly concerning that such deficiencies still existed as late as 10 days before the end of the transition period. Is the Minister confident that the department’s chapter in the statute book is now as it should be, or can we expect further correcting SIs in the future?
While these provisions are not necessarily directly responsible, it is fair to say that certain aspects of trade between Great Britain and Northern Ireland have not operated as seamlessly as we had hoped. As my noble friend Lady Smith of Basildon noted during the repeat of an Urgent Question last week, the Government were warned well in advance of the potential for many of the difficulties that we have witnessed.
To put technical regulations in place is one thing—the sheer number of SI debates I have taken part in suggests that there is no shortage of technical regulations—but ensuring that IT systems work and that businesses are fully prepared for new ways of working amounts to a very different task. These are areas that we probed for many months, only to be told that we had no reason to worry. Regrettably, that complacency has resulted in difficulties for businesses on both sides of the Irish Sea. I end, therefore, by asking whether the Minister could use some of his speaking time to provide a general update on the situation regarding GB-NI trade.
Protocol on Northern Ireland: Disruption to Trade
Baroness Ludford Excerpts(5 years ago)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, it is important that we are clear about the overall picture. One must not overstate individual anecdotes into a systemic picture. I acknowledge that there have been issues—that was never denied—but, overall, goods are continuing to flow effectively. Supermarkets are able to move their lorries into Northern Ireland. There are some specific issues, as we have seen with individual suppliers, but it is holding up well overall. The UK Government will continue to work with supermarkets, retailers and suppliers to move in the longer run to end-to-end digital systems that enable goods to be moved in accordance with the protocol in the most streamlined way possible.
Baroness Ludford (LD) [V]
My Lords, the Government, led by the Prime Minister, put ideology over practicality and deception over honesty in the pursuit of Brexit. The claim made by the noble Lord, Lord True, in last Friday’s debate that,
“the flow of goods under the Northern Ireland protocol is smooth overall”—[Official Report, 8/1/21; col. 442.]—
an answer he has just repeated—is contested by seven supermarket bosses. The Answer to this UQ is somewhat of an improvement on those rather complacent claims, but only when the Government are totally honest about the fact that there is a border within the UK can they start to resolve the practical difficulties of the protocol. When will that total honesty appear?
Lord True (Con)
My Lords, the Government have been honest and have not been ideological. My right honourable friend the Prime Minister simply implemented the instructions of the British people—some noble Lords have not yet caught up with that. Goods are flowing effectively between Great Britain and Northern Ireland overall, with more than 1,000 trucks a day. I have acknowledged that there are certain difficulties and issues, but we must not overstate them and we are working pragmatically to address them.
European Union (Future Relationship) Bill
Baroness Ludford ExcerptsWednesday 30th December 2020
(5 years, 1 month ago)
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Baroness Ludford (LD)
My Lords, we bid adieu to the noble Lord, Lord Cavendish of Furness, as we welcome the noble Lord, Lord Austin of Dudley. I wish them both well.
The wisest comment on the Johnson deal came from his Conservative Party colleague—if not friend—the noble Lord, Lord Heseltine, somewhat puncturing the bluster and self-congratulation. He said:
“We must welcome the news that Brexit does not end in the chaos of no deal, but only with the sense of relief of a condemned man informed that his execution has been commuted to a life sentence.”
What was promised in 2016 was “the exact same benefits” as EU membership and “frictionless” trade. That was a cruel deception then and it is a very bad joke now. No wonder Mrs Thatcher was so keen to promote the single market; this threadbare Tory deal betrays her legacy, and it is not—I have to say to the noble Lord, Lord Lamont—membership of the Common Market.
The lack of an impact assessment of this sorry deal, pointed out by my noble friend Lord Purvis, speaks volumes, as does a new YouGov poll showing that only 17% of the public think that this deal is good for the country. As my noble friend Lord Fox and others have fully explained, the Government’s exclusion of British businesses from the EU single market and customs union means that they face an avalanche of laborious form-filling, a huge £7 billion cost, slower deliveries and duplication of certification, inevitably leading to higher prices. Our farmers face tougher export barriers than New Zealand farmers do in exporting to the EU, and as for the ban on exporting sausages, at least in “Yes Minister” the Euro-sausage could be traded.
I will not repeat our present Prime Minister’s expletive-deleted dismissal of business concerns, but he has delivered on his infamous curse. The claim of the Chancellor of the Duchy of Lancaster that dealing with all this red tape will be good for British exporters, by making them “match fit” for global trade, has rightly met with derision. Meanwhile, it was reported that the Prime Minister’s extraordinary and, I have to say, ignorant claim of there being no non-tariff barriers in the deal
“had business leaders falling off their chairs.”
There will be a plethora of committees overseeing this deal under the umbrella of the partnership council, plus those under the withdrawal agreement—32 in all, as the noble Earl, Lord Kinnoull, highlighted—with no transparency and no democratic oversight, unlike the EU institutions so reviled by the Brexiters.
There is almost nothing in this deal, as my noble friend Lady Kramer and others pointed out, for the 80% of our economy represented by the services industries. There is no equivalence regime for financial services, itself a very second-rate replacement for passporting that can be withdrawn at any time. There is, as yet, no data adequacy regime for transfers vital to much of business, especially the tech industry.
Given that that 80% of our economy was sacrificed for fish quotas, there is no little irony in the fact that fishermen are up in arms, too, while the noble Lord, Lord Green, remains unhappy about the smoke and mirrors on immigration. The lack of mobility for performers and broadcasters is a body blow given the huge economic as well as cultural contribution of our creative industries, as my noble friend Lord Clement-Jones and the noble Baronesses, Lady Bull and Lady Bakewell, articulated.
Speaking of cultural exchanges, the mean-mindedness of the Government in refusing to continue participation in the Erasmus scheme, rightly highlighted by many noble Lords, demonstrates that they know the price of everything and the value of nothing. Tory MPs have been tweeting demeaning claims that only middle-class kids benefited from it, which is not true. As my noble friend Lord Newby noted, it is interesting that the Irish Government will pick up the tab for students in Northern Ireland.
There are so many ways in which British citizens and consumers are losers, chief among them the loss of freedom of movement to live, work, study or retire, as highlighted by my noble friend Lord Shipley. I acknowledge that I am an Irish citizen, but that is by birth and not by scheming. There are plenty of Brexiters who hypocritically have made sure to acquire an EU passport so that they are not subject to the same constraints as those inflicted on most Brits. Other losses include the loss of protection from mobile roaming charges and the loss of pet passports. There will be new VAT and customs hassles in sending and receiving parcels to and from the continent—it is reported that the Post Office is already refusing to accept parcels—so it is bye-bye to ease of online shopping and eBaying.
As for policing and law enforcement, our citizens will be less safe, as my noble friends Lord Paddick and Lord Marks and others pointed out. We will no longer be a member of Europol, where we were a leading member. In both Europol and Eurojust, our status is reduced to having to wait to be invited to operational meetings. Our police and Border Force are locked out of the crucial Schengen Information System database, which, as many have said, was consulted 600 million times last year. The extradition scheme is not as smooth or as speedy as the European arrest warrant, but it is better than the 1957 Council of Europe convention. My noble friend Lord Marks also rightly deplored the backward step on civil law co-operation.
As my noble friend Lord Wallace of Saltaire pointed out, there is a complete void where co-operation with the EU on foreign, external security and defence policy should be, a sector in which Britain led. This is not a case of the EU locking us out; incredibly, such co-operation is to cease at the request of the UK Government.
This Government are quick to grab the union jack and to politicise it, but what have they done for the loyal British territory of Gibraltar? The answer is nothing. Indeed, they have broken assurances to the Government of Gibraltar that a deal with the EU would not be agreed unless and until a deal was found also for Gibraltar. What guarantee can the Minister give that that gap will be remedied soon?
“Get Brexit Done” was the slogan. This deal disabuses us of any such notion. A Times cartoon tellingly shows Mr Johnson jumping from the EU frying pan into the post-Brexit fire. Cans have been kicked down the road. The gaps in coverage that need to be filled, the level playing field “rebalancing” provisions, the dispute resolution arrangements and the myriad committees all mean that we will be locked into negotiations for years to come, as my noble friend Lady Randerson pointed out.
There is no certainty. The constant spectre of reimposition of tariffs or withdrawal of financial services equivalence or data adequacy mean anything but a stable, sustainable relationship; investors will be deterred. The Prime Minister’s and Chancellor’s celebration of the prospect of divergence seems reckless to anyone who cares about national wealth and jobs.
It is a travesty that the Government are sealing the breach from the EU when opinion polls in the past year have consistently shown that more people think leaving the EU is wrong than think it is right. We are a very divided country. Appeals to rally round this inadequate deal do not cut it.
Brexit is the culmination of decades of the failure of the UK to become a modern country at ease with itself and its place in the world. Our highly centralised state, with Governments holding 100% of power on a share of the vote that consistently falls short of a majority—Boris Johnson got 43%, and that was of people who voted—means that many citizens feel alienated and voiceless.
The Bill amply demonstrates that these extraordinary powers—Henry VIII on steroids in the words of the noble Lord, Lord Anderson of Ipswich—mean that taking back control means even more executive power, not parliamentary lawmaking, as my noble friend Lord Sharkey warned. Westminster gets 12 hours on this deal; the demonised European Parliament not only gets two months but is key to ratification, as this House is not.
As my noble friend Lord Alderdice said, the Government have released a dynamic that will make it difficult to hold all the United Kingdom together. In relation to Scotland, my noble friend Lord Bruce of Bennachie urged that only if we can learn and find a more constructive way of engaging with each other may we begin to see the glimmerings of a brighter future within this union.
There will certainly be a process of getting closer and closer to the EU and, as a Liberal Democrat, I hope—I am indeed convinced—that this will culminate in renewed EU membership in my lifetime; and I intend to live quite a while. In the meantime, my group cannot support this sad, sorry, inadequate deal. Indeed, as my noble friend Lord Newby indicated, we will vote against it.
Future Relationship with the EU
Baroness Ludford Excerpts(5 years, 1 month ago)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, discussions are continuing as we are enjoying our session here.
Baroness Ludford (LD) [V]
That was rather a short answer. My Lords, Tobias Ellwood MP, the Conservative chairman of the Defence Committee, has warned that no deal will imperil Tory prospects at the next general election. Maybe that, if not the will of the country, will motivate the Prime Minister. My own priorities include security. When asked about access to EU databases, the Paymaster-General told the other place:
“We will be gaining access to new information via safety and security declarations.”—[Official Report, Commons, 10/12/20; col. 997.]
I think that is a reference to movement of goods. Can the Minister tell me what on earth those declarations have to do with cross-border policing?
Lord True (Con)
I must tell the noble Baroness that negotiations are continuing. As I have said to the House, we are confident that good security co-operation between the United Kingdom and our friends in the European Union will continue, whatever the outcome.
EU: Visa-free Short-term Travel Mobility
Baroness Ludford Excerpts(5 years, 3 months ago)
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Lord True (Con)
My Lords, the noble Viscount raises an interesting suggestion. The Government recognise the importance of touring for UK musicians, and not only them. I have referred to some areas in which we are continuing efforts to negotiate a better solution, but I assure the noble Viscount and the noble Earl, Lord Clancarty, that musicians are very much in our mind.
Baroness Ludford (LD)
My Lords, I am not clear why the Minister’s initial reply was about tourists, because this Question is about people who want to work. The ONS has found that arts, entertainment and recreation, including music, has lost over half its revenue and nearly three in five of its jobs due to Covid. So the hit from Brexit is kicking a sector when it is very down. How are the Government fighting to achieve a multi-entry Schengen visa for people such as musicians, and less bureaucracy for musicians’ instruments than they are set to face—whereas of course they have free movement under existing arrangements?
Lord True (Con)
My Lords, the original Question was about visa-free and short-term travel; tourism is certainly germane to the Question and I am sorry if that was unsatisfactory to the noble Baroness. I have referred to our efforts on short-term visits in relation to business activities. Our offer on mode 4 is extremely generous and we continue to impress on EU negotiators that the agreement we are proposing is very much in their workers’ interests as well as our own.
EU Exit: Negotiations and the Joint Committee
Baroness Ludford Excerpts(5 years, 3 months ago)
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Baroness Hayter of Kentish Town (Lab)
I thank the Minister for returning to the Dispatch Box—apparently unbruised by the government defeat of 226—to defend the Statement and Mr Gove’s words in the other place: that, in any negotiation, both sides have to honour their commitments. Had the Prime Minister done so in respect of the withdrawal agreement, he may not have had to face that defeat.
Yesterday’s headlines were, “Talks break down”. As my right honourable friend Keir Starmer said:
“The collapse of these talks is a sign of Government failure.”
He was in fact responding to the Manchester talks, but it is the story of this Government, who could not negotiate their way out of a paper bag. They boast, threaten and bluster, but fail to reach a consensus with their counterparts. They set deadlines: a deal by July, then September, then mid-October—all missed. They criticise the EU for sticking to its negotiating mandate, but meanwhile boast that they will not move from their own negotiating objectives. It seems it is only the other side, and not ours, that has to move. They criticise the other side for not discussing legal texts, despite the fact that the EU published its 441-page legal text in March but it took until mid-May for us to do the same. Even then, the UK blocked early talks on security co-operation—security: the most important issue on which citizens rely on their Government.
The former Home Secretary and Prime Minister hit the nail on the head on Monday, pointing out that security was not even in the Statement and that, without a deal, law enforcement agencies would have no access to vital databases. I cannot re-enact her mocking response to the extraordinary answer that Mr Gove gave, but I will repeat his words and leave it to your Lordships’ imagination. He claimed that
“we can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside.”—[Official Report, Commons, 19/10/20; col. 761.]
That hardly tallies with the words of the noble Lord, Lord Anderson, who knows a thing or two about security:
“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope … Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”
Closer to home, Naomi Long, the Northern Ireland Security Minister, stressed the importance of a security partnership with the EU to stop the politicisation of extradition in Northern Ireland, as was the case before the EU arrest warrant.
Mr Gove’s view that we could not possibly, as the price for using EU security systems, also accept its court on the issue of how we use that data seems remarkable for its short-sightedness. Perhaps the Minister can update the House on progress towards a security and data-sharing agreement.
The Government have taken to saying that we had been offered a Canada-style agreement but it is no longer available. In fact, that was never going to happen. The Commission’s February slide on “Geography and trade intensity” never suggested that a carbon copy of CETA was on offer, simply that the same legal form as the FTAs with Canada and South Korea could be used. What is more, the Canada deal contains level playing field measures of the sort the Government now say they will never accept. If they are now willing to go the Canada way, will they also honour the political declaration that the Prime Minister signed and accept a level playing field?
This trade and security deal is too serious for playing games. Last week, 70 business groups, with more than 7 million employees, urged the Government to return to the table to strike a deal. These industries—automotive, aviation, chemicals, farming, pharmaceuticals, tech and financial services—are desperate for their futures and urge a compromise, as this matters greatly for jobs and livelihoods. As they say:
“With compromise and tenacity, a deal can be done.”
Sadly, yesterday’s perfunctory call with Boris Johnson left them disappointed. Some described it as unbelievably disrespectful to the concerns of business. The Prime Minister apparently asked companies to “end the apathy” and get ready, while Mr Gove described our departure as like moving house—a bit of disruption. Of course, it will not be Mr Gove or other Government Ministers who have to cope with a bit of disruption. There will be people losing jobs, consumers paying more for their food, Kent and Anglesey residents finding their roads blocked by lorries and their verges taken up by portaloos, and citizens’ rights at risk. Small business groups have pressed for transition vouchers to pay for extra preparation. I gather that Mr Gove said he would take that back to the Treasury, so perhaps we could know the outcome of that request.
At least they got a meeting. The SMMT did not even get its letter answered. On Monday, there had been no response to its 1 October letter, so perhaps we could be told whether it has now been answered. Meanwhile, the country’s leading transporter of diesel and petrol faces a 4% tariff on the fuel it imports if we do not get a deal. This will affect the industry itself, but it could also mean increased prices at the pumps, possibly up to 3p a litre. The knock-on effects on industry are evident.
Mr Gove was asked by my honourable friend in the other place how much of the £50 million for customs intermediaries had now been drawn down and how many customs agents had been trained. Unfortunately, she got no reply. So, we ask again: how many of the 50,000 will be in place on 1 January?
Finally, what is the status of the Goods Vehicle Movement Service, given that work on its IT system had not even started a few short months ago? The Government stress that businesses need to prepare, but seem unable to demonstrate that they have done their own work. Perhaps we can have an update on that as well.
Baroness Ludford (LD)
My Lords, the Chancellor of the Duchy of Lancaster claimed that the UK was “increasingly well prepared” for what he called
“leaving the EU on Australian terms”.—[Official Report, Commons, 19/10/20; col. 756.]
Putting aside the fact that “Australian terms” is just a euphemism for no deal, whereby the UK trades on WTO terms and our exports face tariffs and quotas, the cries of pain from business are audible for all to hear. They are far from having the “high hearts and complete confidence” at the prospect of no deal that the Prime Minister expressed—or indeed at the prospect of the skinny deal that represents the height of government ambition.
The Government have launched a “Time is running out” campaign urging businesses to get ready. But get ready for what? The Government must acknowledge that they are the ones keeping businesses in the dark.
The Road Haulage Association described a meeting with Michael Gove about post-Brexit arrangements last month as “a washout” in which they got “no clarity” on how border checks will operate when the transition period ends. In an interview on Monday, its managing director of policy and public affairs, Rod McKenzie, responding to Mr Gove’s claims, in a Statement, of
“putting in place new IT systems to help goods flow across borders”
and
“giving business access to customs professionals,”—[Official Report, Commons, 19/10/20; col. 757.]
said:
“It’s a bit of a cheek to say that ... It would be fine to accuse people of having their head in the sand and not having done anything if we knew what we had to do. The problem is the Government has spent not just months, but years, failing to tell the businesses that need to make this work what exactly they have to do…they haven’t prepared the IT systems that will make this work … and they haven’t hired enough customs agents to plough through the mountain of red tape that will be created by this new system.’
Then there is business as a whole. The BBC’s business editor, Simon Jack, tweeted yesterday about how business leaders had described a call with the Prime Minister and Mr Gove as “terrible,”
“unbelievably disrespectful to the concerns of business”
and “more of a lecture”, with the Prime Minister accusing them of “too much apathy”.
There is still no clarity as to what the trading relationship will be. The Government need to acknowledge that business does not have the certainty that it needs. Will the Minster retract the absurd claims that businesses have their head in the sand or are displaying apathy in preparing for Brexit? Will he accept that the Government’s current plan is very far from being “oven ready”, as claimed?
Attentive listeners will detect a bit of a pattern here. It is not just the EU that is getting accused by this Government or their acolytes of being in the wrong. It is business, experts, devolved Governments, mayors, judges, lawyers, the Church, the Civil Service and Parliament—especially, of course, the House of Lords. Gibraltar, Jersey and the Falklands are not exactly brimming with happiness and contentment, either. Perhaps, the Government should examine the mote in their own eye, rather than try to bully, bamboozle and blame everyone else. Their negotiating style has the effect of alienating almost every group they encounter, except, perhaps, rich Tory donors, including Russian ones.
On security, Mr Gove made the truly astonishing claim to the other place on Monday in response to former Prime Minister Theresa May that security would be better outside the EU. Mrs May was seen to mouth “What?” in response to that astonishing and hopelessly untrue claim. The noble Lord, Lord Ricketts, tweeted yesterday:
“If UK loses all access to EU systems from 1 Jan, as looks likely, there is no good Plan B.”
The noble Lord, Lord Anderson of Ipswich, said:
“Without the ability to exchange data and intelligence across frontiers, law enforcement will be increasingly unable to cope. Everything from extradition to notification of alerts, crime scene matches and criminal record searches will be much slower, at best.”
I remind the Minister that these people are experts. Mrs May was the Home Secretary for several years who masterminded the process in 2014 whereby the UK opted to stay in all the important EU law enforcement measures. The noble Lord, Lord Ricketts, is a former National Security Adviser; and the noble Lord, Lord Anderson, is a former independent reviewer of terrorism legislation.
If the Minister wants to tell me now what precisely is the
“variety of methods and arrangements”
whereby the UK
“can co-operate more effectively to safeguard our borders outside the European Union than we ever could inside,”
and which
“can intensify the security that we give to the British people,”—[Official Report, Commons, 19/10/20; col. 761.]
then I am all agog to hear what those measures are. Otherwise, I shall continue to think it is the fantasy it appears to be. The Government need to get real, stop blaming everyone but themselves, stop talking pie in the sky and get on with the negotiations like an adult, not a tiresome toddler.
How does Mr Gove’s claim, in the Statement, of
“the UK’s commitment to upholding all our obligations under both the withdrawal agreement and the Belfast agreement”—[Official Report, Commons, 19/10/20; col. 757.]
sit with the Government’s efforts to get the power to abjure them in the Internal Market Bill, with which this House expressed its severe displeasure yesterday?
EU Trade Agreement
Baroness Ludford Excerpts(5 years, 4 months ago)
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Lord True (Con)
My Lords, I have not looked in detail at Sir Jonathan Jones’s resignation statement, nor have I read the newspapers today. I share and express the respect that all members of the Government have for him. In our judgment, the Ministerial Code has not been breached. We are clear that we are acting fully in accordance with UK law and the UK’s constitutional norms.
Baroness Ludford (LD) [V]
My Lords, I also want to pick up the question of a US trade deal. The Government have trumpeted the prospect of such a deal, but Congress at least will not approve it if the Good Friday agreement is imperilled by this Government’s non-respect of the Irish protocol to the withdrawal agreement. How do the Government expect to get a US trade deal if they imperil the Good Friday agreement?
Lord True (Con)
My Lords, I completely reject the idea that the Government are imperilling the Good Friday agreement. I repeat what I said a minute or two ago: the peace process has an east-west as well as a north-south aspect, which the Government fully respect. The purpose of our approach is to protect peace in Northern Ireland and the Good Friday agreement.
EU: Non-financial Services
Baroness Ludford Excerpts(5 years, 5 months ago)
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Lord True (Con)
My Lords, I cannot answer all the questions that the noble Lord has asked, for the reasons discussed, but I will seek out the answer to his question on his report. So far as reciprocal arrangements are concerned, I repeat what I said earlier: namely, that the Government are seeking to make progress but there are technical delays in the negotiations as a result of the EU’s position.
Baroness Ludford (LD) [V]
My Lords, historically the UK led in the push for freedom to provide services across the EU, but now the Government’s determination to leave the single market and to privilege regulatory autonomy over market access and, even worse, their cavalier attitude to no deal risk sacrificing our trade in services, which represents over 80% of our economy and 30 million jobs, and nearly half our exports with a trade surplus with the EU. Any action can only mitigate the damage. Lawyers, musicians and other creative artists, IT consultants and truck drivers all depend on the ability to move freely to work. Many services are also bundled into the production of goods. These sectors are already reeling from the Covid shutdown. What real hope can the Government, who are rejoicing in ending free movement, genuinely offer these professionals regarding their ability to continue to earn a living from the mobility of working in the EU?
Lord True (Con)
My Lords, the people of the United Kingdom voted to leave the single market. The Government have tabled proposals in a number of the areas that the noble Baroness referred to, and I have commented on the reasons for some of the current difficulties in making progress.
EU Exit: End of Transition Period
Baroness Ludford Excerpts(5 years, 6 months ago)
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Baroness Hayter of Kentish Town (Lab)
My Lords, this Statement in fact sets out an enormous number of costs—costs to Parliament, to business, to taxpayers and to consumers.
First, on the cost to Parliament, we learned of these plans on Sunday, via Written Statements and in the Telegraph, rather than in Parliament. So it is not just York that awaits your Lordships’ House; Coventry is clearly being prepared for both Houses. The devolved nations hardly fare better, despite their responsibility for ports, airports, and human, animal and plant health. The First Minister complained of a lack of engagement with the Scottish Government in developing the new border operating model, and the Welsh Government at one point had mere minutes’ notice of an announcement within their bailiwick. That is no way to treat Parliament.
Secondly, on the costs to business, despite the promise of a deal with no fees, charges or tariffs and no new infrastructure, we in fact face significant disruption to trade from new border checks. This will cost business some £13 billion, let alone any loss of orders and increased import costs, in order to handle 200 million declarations a year. There is real alarm at the state of preparedness across businesses, which are already coping with Covid but have their wall diaries all pointing to the rapidly approaching 31 December. All they are promised is a welter of new red tape.
Thirdly, there will be a cost to taxpayers of £700 million for buildings and staff at borders, including new infrastructure, some at new inland sites. If the ports are not ready in time, any failures could break WTO rules, as we have heard from a Cabinet Minister. There are to be 500 extra Border Force personnel; an IT system not yet tested, let alone introduced; a 27-acre parking lot in Kent bought through emergency purchase of land, the Government having forgotten to tell the local council and, we hear, having to hastily hand-deliver letters to residents on a Friday ahead of work beginning on Monday; and an advertising campaign. We must hope that this will be more successful than the £46 million spent on “Get ready for Brexit”, which the National Audit Office found did not result in significantly better preparedness.
The NAO says that any future campaign should focus on what impact is needed and how behaviour change will be delivered, with resources targeted at activities adding the best value, and a consistent focus on key performance metrics from the start. Can the Minister confirm that lessons have been learned from that earlier exercise—or will just friends of those in the know be used for the campaign, without proper procurement, their USP being more in shared belief than proven campaign ability?
Fourthly and lastly, there is the cost to consumers. I have to say that the Statement’s talk of “significant opportunities” is particularly inappropriate for consumers. As the guidance makes clear, there will be extra documents for travelling, including an international driving permit for some countries; a return to the old green card, or proof of insurance; arrangements for pets needed four months before travel; and continuing confusion around which travel rights will continue. The Government, probably quite rightly, are advising people to get comprehensive travel insurance—more cost to consumers. Of course, there will be much more expensive medical insurance with the loss of the EHIC, especially—I declare an interest—for us oldies, or for those with pre-existing conditions. For consumers it will be all costs and no benefits.
There is no doubt that there was support across the country to get Brexit done, but the Government’s approach has been costly, reckless and disdainful of the views of constituent parts of the UK, of business and of consumers. We see symptoms of chaos and some dysfunction even within the Cabinet. Mr Gove wrote on Sunday:
“Leaving the European Union … is a bit like moving house … Taking back control of the money we send to Brussels means we can spend it on our priorities”.
I have to say that it feels more like a messy divorce, with cash going to lawyers and removal men rather than on the kids.
I have four questions for the Minister. The first is about the advertising campaign I have already mentioned. The second is to ask for reassurance that business will be engaged every step of the way in the design and implementation of IT and documentation systems, and that the devolved authorities will be part of the planning, not mere recipients of information. The third is whether consumer representatives will be similarly consulted. The fourth and last, still in hope, is whether the Government will return to the democratic process of making announcements in Parliament, rather than in Sunday newspapers. Let us have Parliament take back control.
Baroness Ludford (LD) [V]
My Lords, the Government are seeking to put an upbeat gloss on the plans for 1 January, under the strapline, “The UK’s new start: let’s get going”, but getting going anywhere is set to be a very big challenge for both people and businesses. Individuals will lose their free movement, free roaming, free healthcare and freedom to take a pet on holiday abroad at short notice. The Government claim that leaving the EU single market and customs union means that we will,
“regain our political and economic independence.”
It is in fact going to feel like “out of control” rather than “taking back control”.
In the other place on Monday Mr Gove promised
“a free flow of freight”—[Official Report, Commons, 13/7/20; col. 1275.]
but nothing could be further from the truth. The UK will be moving from a highly integrated relationship with the EU to one in which trading with it becomes much more difficult. There will be customs forms, physical checks, new VAT rules, plant and animal health requirements, export declarations, a lorry park, and a vast new IT system—always a terrifying prospect. This is going to hit businesses struggling with the disruption and economic hit of Covid; perhaps they might just be getting their heads above water by December, at which point they will get hit by the Exocet of masses of expensive new red tape.
The Government have left it until 24 weeks before the end of transition to produce this plan. What have they actually done for the last four years? One sensible move would, of course, have been to extend the transition period, so as to avoid distraction from the pressing issue of dealing with the pandemic, but Brexit ideology, as always, trumped good sense. The complexity facing businesses can be judged by the fact that this government document comprises a dense 200 pages. As the Trade Secretary rightly highlighted in her striking letter of last week, the controls, IT systems and lorry parks will not be ready by the end of the year. This is the real reason they are being phased in over six months. Are we seriously to believe they will be ready by July next year?
Ms Truss urged
“it is essential that my department has a clear view of operation delivery plans, timescales and risks going forward.”
This suggests that the Trade Secretary has not been fully involved in plans for imports and exports. Can the Minister explain this extraordinary state of affairs? Ms Truss also pointed out that if, as predicted, the dual-tariff system is not in place for 1 January
“this may call into question NI’s place in the UK’s customs territory”.
What substantive reassurances can the Minister give us—and, more to the point, the people of Northern Ireland —on this point?
This Brexit burden will force companies to fill in an extra 215 million customs declarations every year, which Mr Gove’s document acknowledged were “complicated”. The cost for them is estimated at between £7 billion and £13 billion a year; this is on top of huge costs for the public sector. So this is where “our money back” will be going—not on the NHS, but on bureaucracy. Many firms will face the expense of hiring customs agents to complete new border formalities on their behalf. It is estimated that 50,000 of these will be needed, a figure that dwarfs the number of officials in the demonised European Commission.
The Trade Secretary, in her letter to Messrs Gove and Sunak, was worried about tariffs being dodged and asked for
“assurances that we are able to deliver full controls at these ports”—
that is, EU-facing ports—
“by July 2021 and that plans are in place from January to mitigate the risk of goods being circumvented from ports implementing full controls.”
What she is talking about, of course, is the risk of smuggling and fraud; this is an astonishing admission, so what is the answer to how these risks will be addressed?
It is clear for all to see that the promises of “frictionless trade” and “an oven-ready deal” were mere empty slogans. We are seeing what my honourable friend in the other place, Stephen Farry MP, called
“the brutal reality of Brexit”.—[Official Report, Commons, 13/7/20; col. 1279.]
It is no comfort at all for some of us to say, “We told you so.”
The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, I am grateful to both noble Baronesses for their welcome for the Statement made by my right honourable friend—with modified degrees of rapture, I must confess to the House, but I always benefit from their comments and, as ever, I will try to listen and learn from them. However, I shall say one thing as a premise—I think the noble Baroness will know that I am going to say it, but I make no apology for it because it was reasserted by the British people last December. The British people twice made a very firm declaration that they wish to go forward as a sovereign nation outside the European Union, and did so in full knowledge of the circumstances that would obtain. No one in this House or in this polity can assert that, over four years of debate on the question of leaving the European Union, any question was not unearthed in that time. The British people resoundingly reasserted their verdict last December, and this Government intend to implement, and are implementing, that. I believe that that is the inescapable, underlying point which we never hear from the other side.
On costs, of course the Statement acknowledges that there will be elements of cost. The Government do not accept the cost estimates that both noble Baronesses referred to, and indeed it has become clear that some of those who made the calculations did so on the basis that every document would be filled in manually. That is not the case; we are moving to a new, modern, smart border.
I make no apologies for the additional expenditure which the Government are undertaking to secure our borders and provide a modern, effective border. Indeed, the noble Baroness, Lady Ludford, made the point very powerfully—and I agreed with it—that we need to have an eye to smuggling, the abuse of modern slavery, and so on. Part of this package is employing more Border Force operatives and indeed investing in new facilities and IT and opportunities for Border Force to control more effectively our borders and operate against crime. I believe that that is important. The whole £705 million package which has been announced will serve this country well and will be welcomed by most of those involved.
Another point that did not come out in the statements from the noble Baronesses opposite is the welcome that British business has given to the publication of the border operating model. This model was not sprung on business, as was implied, but is the result of lengthy, ongoing discussions and previous documents and conversations, and it reflects the wisdom of many business sectors and operatives. That is why it has had the welcome it has had. Again, my right honourable friend the Chancellor of the Duchy of Lancaster made it clear that there was further material— “i”s to dot and “t”s to cross was I think the phrase he used—and I can assure the House that those conversations and that engagement will continue with business in every part of this United Kingdom.
Although border control is a reserved matter, I refute the view that the devolved Administrations are not appropriately engaged. Obviously, I am always concerned when I hear that there is dissatisfaction about that and I take that back, but I can assure the House that efforts are constantly made, and indeed that engagement takes place on a regular basis and will continue to do so.
On the advertising campaign, which both noble Baronesses asked about, again, there has been a very wide welcome for this. Again, the Government make no apology for undertaking this campaign and committing extensive resources to it. It is important that business and consumers and the people of this country should be fully ready and aware. The noble Baroness rightly referred to the importance of consumers, and I can assure her that an eye will always be held to the views of consumer groups. However, I can also specifically answer her question on the NAO recommendations. She makes an important point and those recommendations have been taken on board by the Government. There will be staged monitoring of the effectiveness of the campaign and it will adhere to the proper requirements of government advertising. I give her that assurance in the House; I hope that is sufficient, but if she would like me to provide further details, I should be happy to do so, because it is a valid point and I fully take it on board.
The noble Baroness asked about business engagement, and I hope I have answered that. It is not something that suddenly started or will suddenly stop. Business engagement will continue as the process develops over the next few months. I am sorry that the noble Baroness feels what she said about Parliament. I think she knows that I have a profound respect for Parliament, particularly having spent most of my life on the Back Benches and never expecting to be standing at the Dispatch Box. As I understand it, the normal courtesies were followed with the Statement at the other end but, if they were not, I will look into the matter. However, my own view is that the fullest co-operation with opposition parties, and indeed with those of no party, is the best way to get Parliament and this revising House to work at their best.
I think that that covers most of the points that the noble Baroness raised. I do not accept this stuff about a lorry park. Work is ongoing in terms of what kind of infrastructure and facility will be required, not only behind the Dover Straits or in co-operation with the Dover Straits crossing but with other ports in the land. Those consultations are ongoing and the Government intend to provide such support as is needed to ensure that there is the fullest and freest flow of trade everywhere. I can assure the House that other ports, not just in the south-east, are taken care of. I note what the noble Baroness said about my right honourable friend’s contact with local MPs in Kent, and I believe that that represents accurately that those conversations will be taking place.
On the points made by the noble Baroness, Lady Ludford, she will know that, with the greatest respect, I diverge from her just a little on both the past history and the present analysis. As she knows, it is not the normal custom for this Government, or any Government, to comment on leaked documents, so I cannot pursue her into a detailed parsing of the letter that she has in her hands. She will know, because until recently the Liberal Democrats were also a party of government, that there is constant give and take within government. There is conversation within and outside government. That is how best policy is formulated, and the policy which is on the table and which I present to the House is the collective, agreed and actively supported policy of Her Majesty’s Government.
On Northern Ireland, which the noble Baroness raised, she will know that the union is close to my heart personally and, indeed to that of my principal, the Chancellor of the Duchy of Lancaster. The border operating model obviously does not apply specifically to Northern Ireland, but a document will be published later this month that will refer to and cover the situation in Northern Ireland. Yes, I can confirm that there is a supported programme to secure intermediaries and customs agents: we have discussed that in the House before. Again, I make no apology for that support and expenditure; it is important to secure the modern and effective borders that we need.
There are great opportunities here not always mentioned by those on the other side. In future, I am certain that, with the help being offered through the operating model and the advertising, our exporters will be ready to take advantage of new free trade agreements that we are negotiating with some of the world’s fastest-growing economies. Our small businesses will be ready to grow as we regulate our own industries in a way that works for them. Our economy will be ready to attract the best and brightest from around the world as we introduce a new points-based immigration system, and our fishermen, God bless them—fisherfolk —will be ready to flourish as we again take control of our coastal waters. We are ready for the opportunities in front of us and I believe that this Statement carries those forward.
EU: Customs Arrangements
Baroness Ludford Excerpts(5 years, 6 months ago)
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Baroness Ludford (LD) [V]
My Lords, at present, from the moment a truck drives off the cargo deck of a ferry at Dover, it takes less than four minutes for it to reach the port exit and begin its journey onwards into Britain—and of course that process is free of paperwork. How long will it take that lorry in the future, counting the time at a customs processing centre, the details of which we do not yet know?