Brexit

Lord Monks Excerpts

Wednesday 2nd October 2019 Lords Chamber

[Lord Monks (Lab)]

My Lords, the Prime Minister said this morning in his Manchester speech that no deal,

“is an outcome for which we are ready”.

The noble Lord, Lord Callanan, repeated that in his introduction to this debate, and the noble Lord, Lord Lilley, has been trying to give some substance to that optimistic remark. I will focus my remarks on whether we are ready and the areas in which a no-deal operation could result in major problems for this country, and maybe seek a ministerial update on some of the problems with no-deal planning and whether we can assess whether the UK really is ready in a number of key areas.

It is about a month since we learned via a leak about Operation Yellowhammer. Members of this House will remember that this was a gloomy assessment of the state of the UK’s preparedness for no deal. However, the Government, in the shape of the Chancellor of the Duchy of Lancaster, explained that Yellowhammer was a worst-case scenario, that the issues flagged up in it were being addressed, that the assumptions were being regularly updated, that a review was under way and that substantial progress had been made. The Government continue to make reassuring and optimistic noises about there being no problems beyond, in the words of Mr Gove,

“some bumps in the road”.

So exactly what progress has been made? Can we learn whether Mr Gove’s cheerful assessment is still justified, or are the sobering, rather depressing messages of Yellowhammer still blindingly relevant? I will select a few issues out of many in the Yellowhammer leak. Perhaps the Minister will be able to bring us up to date on at least some of these in his reply. First, in the event of no deal, is it still the case that between 50% and 85% of trucks on the Dover-Calais route are not ready for French customs, despite the work that has been done on the Calais port facilities? That was what Yellowhammer said. Is it still the case that it could take three months to sort this out between Dover and Calais, meaning in the interim that a truck could expect to be delayed by between one and a half and two and a half days on that route?

I read in the paper this morning, rather contrary to what the noble Lord, Lord Lilley, said, that the chief executive of Dover had said that a no-deal situation would cost Dover £1 billion a week. That did not seem to me to be too optimistic about what no deal would mean. These are key factors in our future trade relationship with the European Union. Yellowhammer said there was a need for an agricultural food supply chain. Is that yet in place? If so, what is it and how will it work? Perhaps we can be told about that.

Shifting away from trade for a moment, in the event of Brexit UK citizens will lose their EU citizenship and access to services such as free emergency healthcare in other countries. What arrangements are being made to protect and advise British citizens in those circumstances? Is anything being planned? Can anything be done? What steps are being taken to limit expected rises in food prices in the event of no deal—rises that will impact particularly on the poorer sections of our society? Finally—this is perhaps an issue that has not been addressed in recent debates in this House—how can we stop clashes at sea between UK and EU fishermen if existing arrangements on respective shares of the channel, the North Sea and the Irish Sea lapse with nothing to replace them? We know that some fishing fleets are staffed by pretty excitable people in some countries, probably including parts of the UK.

As others have said, we are hearing a lot this week about “Get Brexit Done”, but my brief list of questions—there are many others, not least on the Irish situation, which I could easily have quoted—shows just how difficult a no-deal Brexit would be. As others have said, 31 October will not be the end, or even the beginning of the end; it will be merely the start of a tortuous negotiation that will take years, given the accusations and bad faith that will cloud it from the start and the poison in relationships that will develop from any no-deal situation. Does the Minister accept that that could be the case, and can he provide us with any enlightenment on progress, or the lack of it, since Operation Yellowhammer and on what a no-deal Brexit would really mean?

[Lord Taverne (LD)]

My Lords, I had not realised that I was the next speaker—

Brexit: Withdrawal Agreement and Political Declaration

Lord Monks Excerpts

Thursday 10th January 2019 Lords Chamber

[Lord Monks (Lab)]

My Lords, the noble Lord, Lord Framlingham, opened by expressing his total disagreement with what the previous speaker, the noble Lord, Lord Armstrong, had said. I am going to repay the compliment by saying that I did not agree with one word of what he said.

We are in a position today where we are waiting to see if the Government can produce that little bit of magic—parliamentary magic—in the next few days that will save the Prime Minister’s deal with the EU. The Prime Minister is rummaging around for a winning formula, including, I read today, contemplating possible guarantees that workers’ rights will be aligned with the EU indefinitely. I have to say that the TUC is very sceptical about the Government’s sincerity, given their record of hostility stretching back so many years on this particular subject. But I am glad that, at long last—and it has been a long time—the Government are beginning to reach out beyond the Conservative Party, although it seems far too late to garner additional support for any deal that will be put to the other place next Tuesday. There should have been this process at the start of the proceedings, after the referendum result. The Government should have led a process that got people together to decide the most practical way of dealing with the referendum result and with the European Union in future. Instead, we are faced with the discussion at the 11th hour, as the Government face, desperately, a pretty bleak prospect next Tuesday. Trapped by her own red lines and a fractious party, the Prime Minister is likely to be forced to come up with a plan B next week. It is that prospect that I would like to address briefly this afternoon.

Plan B surely cannot be no deal, which would be a recipe for chaos across a wide range of this nation’s activities, including a hard Irish border. The noble Lords, Lord Lilley and Lord Framlingham, might ignore that particular inconvenient truth, but a hard Irish border is not something anybody with a knowledge of the history of Ireland would fancy. It is a desperate situation. There would be huge pressures at the ports, as we have already heard from previous speakers, and no doubt we would find ourselves quickly approaching EU countries again to help us out of the mess in the event of having gone down the no-deal route. This time, it would be against a backdrop of chaos and disruption.

The Prime Minister famously said that,

“no deal is better than a bad deal”.

Now she has come back with a bad deal, including a vacuous, aspirational political declaration about the future, which is no more than a wish list, and a programme for intensive talks over the next two years designed, ironically, to get us as close as possible to the current status quo as we can get. The deal to be voted on in the other place next week is a mechanism for more uncertainty, not less. It gives no security but offers insecurity, lots of rows and more and more dislocation. I certainly cannot support it but will support the amendment in the name of my noble friend Lady Smith. But let us be clear that no deal is the default option. It will happen on 29 March unless there is an alternative plan. The need for such a plan is therefore now urgent. If the Cabinet cannot come up with one, Parliament must rise to the occasion and do so.

The PM recently added the third possibility of no Brexit, admittedly more as a threat than a real option. But it should be crystal clear to everyone that anything that a UK Government can negotiate will be less favourable than our current membership—less favourable in almost every respect: economic, trade, security, financial services, science, education and culture, all will be worse than the status quo. The reason given for not recognising that is that we must respect the result of the 2016 referendum. I take that very seriously—I initially held that view—but the cost, the disruption and the risk to jobs, workers’ rights and the economy have become clear. The dangers are all too tangible and cannot be airily dismissed as yet another Project Fear. When the facts change, you should change your mind, as a famous economist famously advised—or as a wise miners’ leader said, we should be,

“a movement not a monument”.

I therefore favour asking the British people to take a fresh look at the position, through a people’s vote, with a firm remain option on the ballot. We are unfortunately a long way from that situation. I cannot yet see a solid majority for that option in the other place, and both the main parties’ Front Benches are not in favour, at least yet. If the Commons goes for that option, obviously the Electoral Commission could have a tricky job in sorting out and securing support for the appropriate question.

One other option should therefore be kept in play: the compromise option of remaining in the EEA and rejoining EFTA. I hope noble Lords will have a chance to read two pamphlets, one by my noble friend Lord Lea and Michael-James Clifton of the EFTA Court, and the other by Lucy Powell MP and Robert Halfon MP. These set out clearly how this option could be made to work through retaining membership of the single market and the customs union while leaving the EU with no problems in relation to the Irish border. It might just be an acceptable compromise. It is perhaps everyone’s second-best, but it should not be ruled out too easily at this stage.

In conclusion, we must encourage the other place—which has huge decisions to take—to be statesman- and stateswomanlike and prompt them to rise to the occasion and give a lead to the nation. The Cabinet has been failing to do that. Now, at last, it is Parliament’s turn, and we, and especially the other place, cannot afford to fail.

EU Exit: Future Relationship White Paper

Lord Monks Excerpts

Thursday 12th July 2018 Lords Chamber

[Lord Callanan]

I do not know if the noble Lord has a copy of the White Paper but, if he looks on pages 32, 33 and 34, he will see a substantial amount on what we see as the mobility partnership, the ending of freedom of movement, et cetera. Maybe he would like to look at those pages. Of course anything we seek to negotiate will conform with WTO rules. We will be an independent member of the WTO. We look forward to resuming our seat and we will be a global advocate for free trade, in conformity with WTO rules.

[Lord Monks (Lab)]

My Lords, I am sure that no one wants to undercut the position of government negotiators in the continuing talks with the European Union, but how realistic is it for the Government to pick out those bits of EU structures they like and want to retain and jettison the other bits that they do not like? Is it not cherry picking on an epic scale, almost like the England football team looking for some special dispensation from the rules in the World Cup to gain an advantage? Is the White Paper an opening basis for talks or will it be plastered with red lines laid down by elements of the Cabinet and the Conservative Party? Is this a basis for negotiation or an inflexible position?

[Lord Callanan]

No, this is not cherry picking. All trade agreements are bespoke. This proposal puts our rights and responsibilities in a new balance that fulfils our joint ambition to establish a deep and special partnership. The reason that we believe in free trade is that it is unambiguously positive for both sides. The EU has a surplus of goods trading with the United Kingdom, so it has an extra incentive to agree a partnership on that basis. We want to discuss these proposals with it and hope it will be able to accept them but, as with all these things, we have already made considerable compromises in the negotiations, as has the EU. Those of us who have been MEPs in the past know that all EU negotiations result in considerable compromise from both sides. It is difficult to see how we can compromise much further in the proposals but, nevertheless, we will engage in the discussions in good faith.

Brexit: UK-EU Relations (EUC Report)

Lord Monks Excerpts

Monday 2nd July 2018 Lords Chamber

[Lord Monks (Lab)]

My Lords, I agree with rather a lot of what the noble Earl, Lord Sandwich, said, but I make one conspicuous exception—his remarks about the German football team. Like many others, I was quite pleased to see them knocked out before they encountered our boys.

I add my appreciation to the long list of tributes being paid to the noble Lord, Lord Boswell, his committee, its staff and all those who have been involved in the preparation of this report. It is an excellent one and I hope it will not be added to the rather long list of excellent reports from this committee whose exact effect on government policy over time I am still trying to see—not very much, in my perception. I ask the Minister what points he will take from this report into the deliberations that will take place at Chequers later this week and in the preparation of the White Paper subsequently.

The report certainly reminds us time and again what a vast and complex exercise it is for the UK to give effect to this schism with the European Union. I suspect that few of us in this debate need any reminder. I have long been convinced that the referendum decision in 2016 risks triggering a national calamity by launching the UK on a journey that could lead to less influence, a weaker economy, job losses and lower public revenues available for the NHS and our other vital services. We are on a road to diminution if we are not careful.

The Government’s flat-footed interpretation of the referendum vote has made matters worse. In retrospect, should not the Prime Minister, before triggering Article 50, have tried to build an all-party approach at Westminster, as some previous contributors to this debate have mentioned? I do not pretend that it would have been easier, but it could not have been much worse than trying to build a consensus in her own Cabinet and her own party, which has been extremely painful to watch. Instead of reaching out, she started with her red lines, which got a round of applause from the Brexiteers in the party but which in reality took us into a cul-de-sac, a dead end from which we are finding it devilishly difficult to extricate ourselves.

Parliament must share some of the blame for this. We have been spectators observing the fumblings of the Government, tolerating their inability so far to come up with any realistic vision of how the UK will relate to the EU in the future. This House supported the idea of Parliament giving the Government a mandate. Unfortunately, the other place narrowly turned it down and an opportunity was missed.

Now we await next week’s White Paper. The Prime Minister, a bit like Baldrick in “Blackadder”, may have a cunning plan which she will unveil at Chequers this week to her Cabinet. Let us hope so, because there is a great need for a realistic and pragmatic plan on which we have a chance of negotiating a decent and practical deal with the EU. But, as the committee’s report details in its careful and judicious language, the challenges are formidable and none of us should be holding our breath tonight.

There must be every prospect of a withdrawal agreement foundering on any one of a range of issues, starting with the Irish border question, to which an agreed solution remains elusive—I fear, even remote. A host of other issues are well illustrated in the helpful charts in the report. It is ironic that the Brexiteers who favour no deal can probably look to the EU as their main ally, because the EU will not compromise its rules and principles, and will not add more border in Ireland to what already exists. British negotiators, with their airy talk of bespoke deals, have yet perhaps fully to recognise this strand in the Commission’s thinking.

As my noble friend Lord Lea said, the trickle of jobs and investment going abroad is already evident. If the UK is to end up as a mere third country aiming for a Canada-style free trade agreement, with no certainty for several years about what that deal will be, expect the jobs and investment emigration to accelerate. I do not believe that businesses are bluffing. Indeed, I am with those who think that they have been far too polite. One reason for that is that many of them are foreign owned and do not want to be seen to be interfering in British internal life and democracy. Only now are they becoming rather desperate and speaking out strongly.

How can we get out of the situation we are in? First, we have to take the least worst options available. For me, that is joining the EFTA and remaining in the European Economic Area, and, from that core, negotiating some bespoke aspects of our future relationship.

In today’s Statement, the Prime Minister again ruled out membership of the single market and the customs union. But whether or not the terminology can be changed to “customs partnership” or “market access”, perhaps under the umbrella of an association agreement—which the report helpfully reminds us is a mechanism the European Union is familiar with and will therefore gravitate towards, rather than to something unfamiliar—let us remember that the EU will always want to keep the arrangement in essence as close as possible to the existing system, especially on trade. So should we.

European Union (Withdrawal) Bill

Lord Monks Excerpts

Monday 18th June 2018 Lords Chamber

[Lord Monks (Lab)]

My Lords, I am disappointed that this amendment did not gather more support in the other place than it did; it was rather crowded out in the shadow of the previous amendment, on which the vote has taken place. My co-signatories and I wanted Parliament to give a steer to the Government on the approach to take in the talks about the future relationship between the UK and the EU. I do not accept that that is unconstitutional. The British constitution evolves, changes and moves. It was not so long ago that Parliament insisted on having a say when Britain went to war, which was unprecedented in our history. This initiative was therefore justifiable.

At present, the Government are flying rather blind in the negotiations. The Cabinet is split; the White Paper has been delayed again. I understand that there is to be another brainstorming session at Chequers soon to see whether the Cabinet can find agreement on what that future relationship should be. Parliament cannot just sit in the stand and watch this fumbling go on in government, the Cabinet and the Conservative Party.

We will therefore return to these matters when the White Paper is eventually published. We will hope to see what criteria the Government and others have in mind to judge the final deal, whether it is a good deal, a not-so-good deal or a turkey. In those circumstances, Parliament will have to step up to the mark and cannot just pretend that it has nothing to do with it until the final deal’s shape emerges.

[Lord Callanan]

I thank the noble Lord, Lord Monks, for his speech. I did not agree with the sentiments, but I take his point. We are fully committed to involving Parliament throughout the process of our negotiations to leave the EU. We have given what may be an unprecedented level of parliamentary scrutiny of Ministers across the Government and of the preparations and negotiations on exit. However, this amendment is not the right way for Parliament to scrutinise the negotiations. The House of Commons has taken a clear decision on it and I urge noble Lords therefore not to insist on it.

European Union (Withdrawal) Bill

Lord Monks Excerpts

Report: 4th sitting (Hansard): House of Lords
Monday 30th April 2018 Lords Chamber

Moved by

[Lord Monks]

51: Clause 9, page 7, line 7, after “to” insert—
“(a) approval by Parliament of a mandate for negotiations about the United Kingdom’s future relationship with the EU; and(b) ”

--- Later in debate ---

[Lord Monks (Lab)]

My Lords, it is time—indeed, over time—that Parliament exerted influence on the conduct of the talks about the future relationship between the UK and the EU. I am talking about the relationship after Brexit. This is not some attempt to reverse Brexit; it is about applying our minds to what that future relationship will be. To bring this about, Amendment 51 proposes an earlier, extra step that would be additional to the vote already referred to in Clause 9 and Amendment 49.

Amendment 51 would provide that our negotiators work to a mandate approved by Parliament to guide them in the talks—not a straitjacket or a corset but a device to make sure that the Government come clean about what they are trying to do in the negotiations. We know a few things already: as we heard earlier, the Government aim to have a deal on the divorce ready for the autumn that would, I think, cover the money, the reciprocal rights of citizens, the Irish border and the transition agreement. It would also cover the future relationship with the EU—but only, I understand, in very general terms in a concluding section.

The talks on this crucial aspect are only just getting under way. Indeed, it was not until early March that the Cabinet, meeting at Chequers, managed to patch up some elements of a common position to take into this phase of the talks. This position seems to rely on selecting what we like and rejecting what we do not as though it is some kind of à la carte menu—the product, by the way, of a lot of wishful thinking with some of the measures which we have been made aware of. This approach appears, unsurprisingly, to be getting short shrift in Brussels, which is just not good enough for a country like ours in this very serious situation.

The amendment seeks a parliamentary vote on the main principles of what Britain would like that future relationship to be. In fact, no one outside the innermost court of the Prime Minister really knows what the UK is trying to achieve, except in the most general and vague terms. Perhaps even members of the innermost circle do not know; maybe they and others will learn a bit more after the meeting of the Cabinet that I understand is to take place on Wednesday.

From my trade union experience, I learned that if you enter talks without a clear idea of your objectives, you tend to end up negotiating more with your own colleagues than with your opponent. There are certainly signs of that happening in the Cabinet at present, if the Sunday papers are any kind of accurate guide.

The slogan, “It is time to take back control” was effective and powerful in the 2016 referendum. Surely it is now time for Parliament to recall that phrase and exert a measure of control over the British approach to talks about the future. It cannot be left just to fudges designed primarily to pacify different wings of the Conservative Party.

Critics of this proposal will certainly say that for Parliament to establish a mandate is unconstitutional. They will quote the convention that the Government cannot be instructed on how to conduct themselves when they are involved in international negotiations. However, this would not in fact be unprecedented. Parliament has stepped in and intervened in recent years regarding military interventions in the Middle East and Libya.

The decision on our future relationship with the EU is just as momentous as a declaration of war and too important for Parliament just to stand tamely on the touchline and play the role of spectator. It is too important for jobs, for prosperity and for peace in a continent with a troubled history. To give one example of how momentous this decision will be, a Canada-style free trade agreement, which is where the EU is currently heading, could on the Government’s own figures cut the UK’s GDP by a massive 5%. That would result in a smaller, poorer nation.

I do not know where a meaningful vote in Parliament on a mandate would lead. It is quite possible that it could endorse the Government’s position, whatever that is, except that they are very clear that they are ruling out membership of the single market and the customs union and any continuing role for the European Court of Justice. It could happen that that position would be endorsed, or a meaningful vote could perhaps lead to the insistence on a sharp, clean break and a switch to WTO rules. Or it could, as I would prefer, aim for the UK to stay in the European Economic Area, perhaps via membership of a strengthened EFTA, thus retaining membership of the single market and the customs union. That is not an ideal position, but with our size we would certainly be more than rule takers. In my view, it is the best option available among some rather unpalatable ones that are consistent with observing the outcome of the referendum.

Whatever the outcome of a meaningful vote on a mandate, Parliament would have spoken on the future relationship and not left these matters solely in the fumbling hands of the Cabinet. After such a vote, it would be incumbent on us all to get behind the decision for better or for worse and to try to make it work for both the UK and the EU. So my message to the House today—and particularly perhaps to the other place—is: assert ourselves, do our democratic duty and uphold the sovereignty of this Parliament before it is too late to influence affairs. I beg to move.

[Baroness Wheatcroft]

My Lords, Parliament needs to know what the Government are trying to achieve in their negotiations. The original vision of having the benefits of EU membership without any of the perceived downsides has evaporated. For the second time this afternoon, I shall quote Sir John Major, for I can put it no better than he did. He said that,

“every one of the Brexit promises is—to quote Henry Fielding—‘a very wholesome and comfortable doctrine to which (there is) but one objection: namely, that it is not true’”.

If “cake and eat it” is off the menu, what is it that the Government are aiming to achieve in our future relationship with the EU? This amendment seeks to give Parliament some say in what the future relationship would look like before it is too late.

We will no doubt be told that it is foolish to try to tie the hands of the Government in their negotiations—but the noble Lord, Lord Monks, has more experience than most of conducting negotiations, and he convincingly introduced this amendment. My experience comes from the other side of the negotiating table, but it leads to the same conclusion: being able to say “my members” or “my board” or “my Parliament” would never accept such and such strengthens rather than weakens the hand of the negotiators. It would surely help the Government to have some idea of where the red lines are as far as Parliament and the House of Commons, in particular, are concerned.

This afternoon the Minister once more made very clear that the Government would like to deprive Parliament of a meaningful vote on whatever deal or no deal they negotiate. This House has demonstrated its objection to that, and I believe that the Commons will uphold that vote. Our system of democracy demands that Parliament should take back control of the Brexit process. Insisting on a meaningful vote is progress. This amendment goes one step further. It endeavours to give Parliament an input into the shape of the deal. We are led to believe that there are differing views within the Cabinet on whether the UK should have a customs partnership with the EU. But if there is a majority of MPs who insist on a customs partnership, would it not make sense for the Government to be aware of that while there was still a chance of negotiating it? If a majority of MPs believe that the country needs to be in the equivalent of the single market of the 27, would it not be sensible to establish that sooner rather than later? It sometimes seems that the only mandate in which the Government have an interest is that granted by the Daily Mail. Parliament surely should be granted as much say in the Brexit process as the tabloid press. This amendment would give Parliament the power to strengthen the hand of the Government in their negotiations with the EU and I urge the House to support it.

--- Later in debate ---

[Lord Callanan]

My Lords, I begin by making it clear that Parliament has a critical role in scrutinising the Government’s negotiating position. It is our responsibility as a Government to provide both Houses with ample opportunities for scrutinising both the approach we are taking to exiting the EU and any implementing legislation—and we are doing so.

The Secretary of State for Exiting the EU has provided an Oral Statement to the House after every negotiation round. He has provided evidence to the Select Committee on Exiting the EU five times, and has appeared before the Lords EU Committee four times. On 29 occasions to date, DExEU Ministers have given evidence to a wide range of committees, from Environmental Audit to Science and Technology. As my noble friend Lord Hamilton observed, the Prime Minister has laid out her intentions for the future economic and security relationship between the UK and the EU in several speeches, most recently in those made in Munich and in London’s Mansion House. Her intentions were also made clear in the seven future partnership papers, where the Government set out their negotiating objectives across a number of areas, including customs, science and innovation. Government Ministers have made a series of speeches laying out their intent for various aspects of the future relationship between the EU and the UK.

The scrutiny received during these parliamentary appearances, and in the multitude of reports from the committees of this House and the other place, have been of great value, and have done much to help inform the Government’s work so far. There has also been a wide range of engagement activity by government with key stakeholders across business, civil society and other interested groups. While there are some who think that Parliament should have a greater role in setting the terms of our negotiations, we simply cannot hold up the already tight negotiating timeline by providing for a further approval process prior to negotiations ending. It must be for the Government, not Parliament, to set our goals for the negotiations on the UK’s exit from the EU, and to conduct them.

As I said in my response to the first amendment that we considered today, the Government have been clear from the start that Parliament will get a vote on the final deal, when Parliament will have the final say on the withdrawal agreement and terms for our future relationship, as soon as possible after the negotiations have concluded. Only if Parliament supports that Motion will the Government bring forward the withdrawal agreement and implementation Bill to give the withdrawal agreement domestic legal effect. The Government will then introduce further legislation where it is needed to implement the terms of the future relationship in UK law, providing yet further opportunities for proper parliamentary scrutiny.

Debates in this place and the work of the committees of both Houses represent valuable forums and opportunities for parliamentary scrutiny, and we have used Parliament’s input to shape our approach to negotiations so far. Indeed, I conclude by quoting some wise words from our own House’s EU Committee’s fourth report of 2016-17, titled Brexit: Parliamentary Scrutiny:

“Parliament should not seek to micromanage the negotiations. The Government will conduct the negotiations on behalf of the United Kingdom, and, like any negotiator, it will need room to manoeuvre if it is to secure a good outcome”.

My noble friend Lord Boswell will no doubt not let me ignore the fact that the report goes on to call for the avoidance of “accountability after the fact”, but I hope that the House will agree that the right response is not to go to the extremes of micromanagement by Parliament. I hope, therefore, that the noble Lord feels able to withdraw his amendment tonight.

[Lord Monks]

My Lords, I thank all those who took part in this debate, which has continued the theme of this afternoon and early evening about the relationship of the Executive to the legislature. This amendment goes to the heart of that relationship. The fact is that we are in a position where we know what the Government are ruling out very clearly; what we do not know is what they are ruling in. In fact, the debates taking place in the Cabinet, as I understand, this coming Wednesday, show that the Government are all over the show about the objectives that they have in the negotiations about the future relationship.

This amendment seeks to provide the means for Parliament to put pressure on the Government to come up with some clarity. There has been activity, yes—and the Minister laid out the wide range of things that have been going on in Parliament about Brexit—but the crucial issue of the future relationship of the UK to the EU is still vague or wishful thinking or a combination of the two. I think that the Government can do better than that and owe it to Parliament to do better, and this amendment is a way of putting pressure on our Executive and the Prime Minister to do something about that.

I will make a quick reference to the punishment scenario painted by the noble Lord, Lord Hamilton. There is a range of things on offer from the European Commission, including membership of the single market and the customs union—many things that would make it business as usual, such as in the EEA and so on. It is our Government who are ruling out those kinds of things, which would provide as much continuity as we possibly can, which seems to be the objective of what the noble Lord was saying.

With all those points in mind, and bearing in mind the hour, I would like to test the opinion of the House on this amendment.

European Union (Withdrawal) Bill

Lord Monks Excerpts

Committee: 7th sitting (Hansard): House of Lords
Wednesday 14th March 2018 Lords Chamber

Moved by

[Lord Monks]

142: Clause 9, page 7, line 7, after “to” insert “—
(a) approval by both Houses of Parliament of a mandate for negotiations about the United Kingdom’s future relationship with the EU; and(b) ”

[Lord Monks (Lab)]

My Lords, Amendment 142 is very ambitious and I am grateful to my co-signatories for their support. It is designed to assert the role of Parliament in the approach that the UK Government adopt to the future relationship of the UK with the EU. At the moment, where does Parliament stand on this vital future relationship? It has won the very welcome right to have a meaningful vote on any final deal that emerges from the talks, but it is conspicuously silent on the approach that the Government are taking to the talks on our future relationship. The amendment—noble Lords will see why I term it “ambitious”—is designed to claim the right of Parliament to have a meaningful vote as soon as possible on that approach, and, in effect, to give a mandate to the UK’s negotiators on the lines to follow.

Critics may justly say, “You’re a bit late; the talks are already starting”. Indeed, it is true that we are a bit late in addressing this question. But it was only 10 days ago that the Prime Minister gave her Mansion House speech, and only a couple of weeks since the Cabinet meeting at Chequers that managed to patch up at least some elements of a common position to take to the talks—and, I would guess more importantly, managed to pacify different wings of the Conservative Party. Many of us consider the position adopted to be unrealistic, wishful thinking and a pick and choose à la carte menu of what we like and what we reject. I fear that it is a fantasy to think that it will get anything other than short shrift in the forthcoming talks.

Other critics of this proposal might say that for Parliament to establish a mandate is unconstitutional, and might quote the convention that the Government cannot be instructed in how to conduct themselves when they are involved in international negotiations. But in fact it would not be unprecedented in recent times, because Parliament stepped in and intervened powerfully on certain occasions in recent years. In 2003 the Government sought a mandate for military intervention in Iraq, and more recently Parliament refused to sanction military action in Syria.

The decision on our future relationship with the EU is just as momentous as a declaration of war. So, to coin a phrase, it is time to take back control. “Take back control” was a powerful slogan in the referendum campaign. It should be equally powerful in this House and the other place now. Our future relationship with the EU is too important for us in Parliament, especially those in the other place, to play the part of spectator: too important for jobs, too important for prosperity, too important for peace, too important in relation to the Irish border question, too important for our future dealings with Russia—an issue that is very much in the headlines and on the front pages today.

As an aside, the importance of a close relationship with the EU is underlined by the present rupture with Russia. If economic sanctions are to be ramped up, it would be necessary for the EU to be involved because the EU is by far Russia’s biggest trading partner—as, of course, it is ours. The uncertain response so far of the United States to the Salisbury outrage contrasts with the solidarity from the EU and underlines the need for us to maintain a close and warm relationship with it.

Frankly, I do not know where a meaningful vote in Parliament on a mandate would lead. The position of the Front Benches would no doubt be key, as it was in the vote on triggering Article 50. It is possible that a vote could endorse the Government’s position, as set out by the Prime Minister in the Mansion House speech: ruling out membership of the single market, the customs union and any role for the European Court of Justice. That could happen—or a meaningful vote could perhaps lead to an insistence on a clean, sharp break and a switch to trade on WTO grounds. Or it could, as I would certainly prefer, aim for the UK to stay in the European Economic Area, perhaps via membership of a strengthened EFTA, thus retaining membership of the single market and the customs union. That would make us more than just a mere rule-taker. It is not an ideal position, but I believe it to be the best of the options available.

Additionally, I would favour using our existing powers—as, for example, do Belgium and Germany—to exert more control on migration. I also draw the attention of the Committee to new proposals from Brussels to ensure that the terms of employment of migrant posted workers do not undercut those of resident workers. We could have done with that three years ago.

Whatever the outcome of a meaningful vote on a mandate, Parliament would have spoken on the future relationship and not left these crucial matters solely in the fumbling hands of the Cabinet. After such a vote, it would be incumbent on all of us to get behind the decision, for better or for worse, and to make it work for both the UK and the EU. My message to this House and the other place is: assert yourselves. Do your democratic duty. Uphold the sovereignty of this Parliament before it is too late to do so.

Amendment 143 (to Amendment 142) not moved.

--- Later in debate ---

Amendments 145 to 147C (to Amendment 142) not moved.

[Lord Monks]

My Lords, I thank all the contributors to this debate. Amendment 142 was love bombed by many noble Lords with extra amendments raising important points which deserved airing and have received consideration, so we provided a vehicle for a lot of other important issues. At times, I was concerned that the central point—what the noble Lord, Lord Lea, called “the architecture”—was getting lost in the specifics that were being raised. We were brought back to those key central points very ably by my co-signatories, the noble Baroness, Lady Wheatcroft, and the noble Lords, Lord Lea and Lord Campbell. By the way, to remind everyone, the noble Lord, Lord Campbell, was a distinguished Olympian in his own right. We had references earlier to our Olympic heroes around the House.

European Free Trade Association

Lord Monks Excerpts

Tuesday 27th February 2018 Lords Chamber

[Lord Callanan]

I am sure that we all await with interest what the Prime Minister has to say in her speech on Friday, but the point about joining a customs union is a serious one. We are the fifth-largest economy in the world and the normal state of affairs in the rest of world is that large countries negotiate their own trading arrangements. It baffles me why people want to contract that out to the European Commission. We collect tariffs that we would then send to the European Commission; we would be totally in its control. Surely, if anything, the EU referendum means that we need to take back control in this country and do not want to contract out our trade policy to another organisation.

[Lord Monks (Lab)]

My Lords, can I ask about the three baskets? It seems that there is detached, semi-detached and alignment. Which of those baskets will take employment rights and workers’ rights? Can we please be told?

[Lord Callanan]

I think the noble Lord will have to wait to see what the Prime Minister has to say about the issue on Friday. I am building up the sense of anticipation.

European Union (Withdrawal) Bill

Lord Monks Excerpts

2nd reading (Hansard - continued): House of Lords
Wednesday 31st January 2018 Lords Chamber

[Lord Monks (Lab)]

My Lords, I want to follow the line of argument developed by the noble and learned Lord, Lord Judge. In fact, a number of speakers in this debate have called for a meaningful role for Parliament in the Brexit process. Indeed, the noble Lord, Lord Hague, was characteristically eloquent on this subject, and tonight I want to address the role of Parliament in the withdrawal process.

At the moment, Clause 9 gives Parliament one meaningful vote on any deal at the end of the talks. That is fine and I congratulate those who promoted it, but some of us suspect that the context for such a vote will be “vote for the deal or face the cliff edge”. There will not be too many other options around at that time. That will be being said not just by our government negotiators but by EU 27 Governments as well.

My key point in this debate is: what about a say and a vote for Parliament at an earlier stage, specifically on the mandate that the Government should follow in the talks about the future of UK-EU relations? At the moment, we have the Prime Minister’s red lines in the Lancaster House press conference speech. She rules out membership of the single market and the customs union and a continuing role for the ECJ. We had warmer words from her in her Florence speech and we have had a mixture of incompatible objectives and wishful thinking from individual Ministers, but none of that carries the authority of Parliament at this stage.

The EU, on the other hand, is currently developing clear mandates on the transitional arrangements, as we saw earlier this week, and in March it will develop one on the future relationship with the UK. But when do the UK Parliament—especially the other place, to which I certainly cede superiority in this matter—and the devolved Parliaments and Assemblies, which will also need to be engaged, get to debate the UK’s approach and give the government negotiators a clearer mandate than they have at the moment? Sure, we will get to commentate in our own committees and in various debates in this House, but we will not play a central role in the process, and that is not good enough.

As many people have said, the Cabinet is in a muddle over how to take this forward, yet Parliament is exerting no pressure on it to get its act together and come up with coherent and practicable positions for negotiating with the EU. As an old trade union negotiator, I am, like the noble Lord, Lord Lupton, all for giving flexibility to negotiators, certainly once the talks start, but starting the talks without clear, practicable objectives is inviting disaster. We need to know whether we are playing bridge or poker when we go into these talks.

At this crucial stage in our island’s story, to progress these negotiations without a parliamentary mandate is careless and undemocratic. It is the opposite of taking back control. It certainly repeats many of the earlier mistakes to which the noble and learned Lord, Lord Judge, referred in terms of the relationship between Parliament and the Executive.

Therefore, we need to amend the Bill to provide for a second meaningful vote in Parliament—this time on the mandate for the talks about the future relationship. This, if adopted, would force the Government, and others, to take a position before setting off to see Monsieur Barnier. It is time for Parliament to exert some control over the withdrawal process, and in due course there will be an amendment drawing on all corners of the House to this effect. My preference—I will be frank and lay my cards face up on the table—is for a mandate that prioritises jobs, rights and trade, as called for in an excellent briefing from the TUC, which I commend to all noble Lords.

I have always been comfortable with the shared sovereignty concept of the EU. I have never found it restrictive; the EU has given us extra scope, extra reach and extra power. It has not restricted anything at all in just about every single case. However, I accept that if Parliament votes on a mandate, the vote might go the other way. To some extent, that would settle the direction of travel, because that direction is not settled at the moment. I will be looking for support from all sides of the House for an amendment along those lines to be moved in Committee and on Report, making that crucial point and returning power to Parliament—which I think was one of the objectives of the leave argument in the referendum.

European Union (Notification of Withdrawal) Bill

Lord Monks Excerpts

Committee: 1st sitting (Hansard): House of Lords
Monday 27th February 2017 Lords Chamber

[Lord Howell of Guildford]

I am not sure I follow the power or logic of that particular point. I am afraid that only three of the 20 fastest-growing countries in the last 10 years, in terms of exports, are members of the European Union—and we are not one of them.

Without delaying your Lordships further, I point out—in the words of the European Commission and their analysts—that “90% of world demand” over the next ten years,

“will be generated outside the EU”.

I suspect at least half or two-thirds of that will be generated from the fantastic, disruptive explosion in the transfer of know-how, information and digital technology of every conceivable kind. This is the world of the very near future: we may have arrived there already. What it means is that there is this apparent cliff edge, as it has been called, disaster, or dividing point between being inside today’s single market and being outside it, but we are dealing with many things that do not have a tariff on them—our services know no national boundaries and can be transmitted regardless of distance whether to a nearby European region or to the other side of the world—and it is becoming a completely new pattern in which we have to operate. To operate effectively, we must think in terms of a vast improvement in skills and a massive acceleration in innovation, and find our way into the gigantic, new growth markets of the future, which I am afraid are going to be largely outside the European Union.

Europe remains very important to us; the bilateral arrangements we have with European countries remain important to us. We are not all sure at the moment—this outlines the absurdity of trying to tie down the Government—whom we will be negotiating with, how much power Mr Barnier will have or what the 27 capital countries will say. I noticed that the Visegrad group—four at the moment—are coming together and have said they want a separate treaty; they do not agree with the approach of the European Commission in Brussels and they are thinking about separate arrangements because they are not satisfied with the general approach. We all heard the day before yesterday one of Mrs Merkel’s chief spokesmen saying that they disliked the whole aggressive approach of Jean-Claude Juncker and the Brussels Commission. We have no idea what is being brewed up as a position on the other side of the Channel to approach us, or whom we will be dealing with. What we do know is that the trade trends I have described are proceeding at a great pace; they are driven by technology that is growing at an exponential pace, with the development of Moore’s law, Metcalfe’s law and all the other aspects we know about; this is what we should take account of.

All I plead is that before your Lordships express too much indignation about whether we are inside the single market or outside it, we might reflect that, as we proceed in this entirely new pattern of international trade, we can do pretty well in dealing with all the aspects—they will be complex—of all the industries and services that will ensure our survival and prosperity in an extremely competitive world.

[Lord Monks (Lab)]

My Lords, I would like to address the question of the single market, which the noble Lord, Lord Howell, has just been talking about and rather discounted its importance, both currently and in the future. I do not whether he and other noble Lords have noticed but there is rather a tide of protectionism running through the world at present, not least in the United States of America—“America first” has been said a lot of times. Just remember that that is the context in which we are operating. I am not going to bandy too many statistics, but if 42% of our exports are going to the EU, compared with 15% to the United States of America, that is still a lot on both accounts, but you do not throw 42% into some lottery for the future. You hang on to what you have got and you seek to improve elsewhere. I agree with the noble Lord about the need to improve our game and raise our skill level, our innovation level and business investment—which, by the way, is going down because of the uncertainty which surrounds the future of the British economy at the present time, and that is a major worry. We are not innovating to the extent that we should be, and certainly not to the extent that certain other northern European countries are. Chucking that away rather lightly in the hope that we will catch a surfer wave of innovation and become the new silicon whatever-it-is island seems to be a rather fanciful notion.

I am not familiar with what Mr Haldane said—I read it but I did not get the same impression as the noble Lord, Lord Howell—but the Treasury’s most recent forecast is that if we collapse out of the single market, that will cost us 7.5% of GDP after 15 years. I am not an expert and I do not know who is right and who is wrong, but we should bear those facts in mind.

I am not going to speak for very long as my noble friend Lord Hain covered this topic very well and the earlier debate about the EEA, on the amendment moved by my noble friend Lord Lea, covered it too. However, I remind Members of the Conservative Party in particular why they should consider the single market to be important. After all, Mrs Thatcher was, as much as anyone, the originator of the single market. She, with Jacques Delors adding on a social bit, basically came up with the idea of the big single market. I remember, as will my noble friend Lord Lea, Jacques Delors explaining at a TUC conference the conversation that the two of them had had. She said, “I want a big market”, and he said, “You can have one. I’ll do my best”. He added in some helpful social things that the trade unions liked; to be honest, they were about the only reason why we liked the single market. However, we may not like a free-trade agreement that does not have any social protections. A NAFTA-type agreement would certainly not suit us because that becomes a race to the bottom on labour standards, welfare and social considerations.

It was not just Mrs Thatcher, either. My noble friend Lord Hain reminded the other side about the number of people in the referendum campaign who spoke in favour of staying in the single market, not least the current Foreign Secretary, Boris Johnson, who said he would vote for the single market. He differentiated between the single market and EU membership, and that is what we are seeking to do today with this amendment.

The single market is important for inward investment, which is the point that was so important in the 1980s. It is important for companies’ supply chains; we have heard about the milk in Ireland but there are many other examples where things are going backwards and forwards—the car industry, Airbus and so on. Let no one dismiss those as old technology that the digital revolution is going to make redundant; they are not. They are fundamental to who we are and what we are, the kind of country we are and what it is going to be in future.

The tariffs on some goods will be substantial if we collapse into the WTO system. As for the passporting issues in the City of London, there are already signs of banks establishing extra offices and extra staffing within the EU—at the moment, particularly in Paris. Even HSBC, our biggest bank, is doing so, so we should not be complacent about this issue.

Membership of the single market would of course ease the problems in Ireland, as debated earlier, and would perhaps remove at least one reason for another referendum in Scotland. What is at stake here is jobs, living standards and rights. We should bear that in mind; if we go down the Government’s route, we will be playing poker with people’s livelihoods on a big scale. Are we likely to get that comprehensive free- trade agreement within two years? I have not yet met anyone who knows anything about trade negotiations who thinks that is the case. Before we ditch the single market, we should be very careful. I was disappointed when I heard what the Prime Minister said at Lancaster House, and indeed in the government White Paper: that the Government are moving in that direction. I hope they will keep the scope to change direction.

We should also bear in mind the points that my noble friend Lord Liddle made earlier: could this be an issue on which there could be an interim provisional transitional measure while we negotiate a trade agreement? Is there something that we could put in place that we could continue with? In fact we do not have to put anything in place because it is in place already, so why do we have to give it up? It is in place and we should try to hang on to that, pending the negotiations that the Government seem so keen on.

That is my plea today: we should have a look at the amendment and at keeping our membership of the single market. I would like to see us keep it on a permanent basis but, if that is not possible, keeping it on a transitional provisional basis might just be possible. It might in fact be the only game in town when we get to the end of those two years.

[Lord Spicer]

My Lords, a distinction is made on purpose between access to the single market and membership of it but most of the speeches made on behalf of remain make that confusion. No one is arguing—or at least I have never met anyone who does—that we should not have access to or do business with the single market, in the same way as they will still want to do business with us. The question is whether we want to be members of it. I so agree with what my noble friend Lord Howell said about the fact that the world is changing now. For a start, the single market is a trade bloc, and it has a long and noble history of being one. It is based upon German technological protection and general French centralisation and protection. That is the foundation of it philosophically. Britain is a high-seas trading nation and, I think, should not be part of that market, but of course it should be trading with it. No one argues otherwise, although of course one has to point out that it is a fairly sluggish market because that is what protected markets are.