Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what the implications are for his negotiations with the EU of the comments of 5 June 2018 by the chief executive of HMRC to the Treasury Select Committee on the cost to UK businesses of leaving with the EU without a deal.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
It is in everyone’s interests to secure a good deal for both sides, and we are confident that good deal is clearer and closer than ever since we agreed the terms of an implementation period with the EU.
While we think that is by far and away the highest probability, as a responsible government we have a duty to plan for a circumstance whereby we leave without a negotiated agreement. HMRC are on course to deliver functioning customs, VAT, and excise regimes the UK will need once it leaves the EU in any scenario. This will enable trade to flow, HMRC to collect revenues and the UK to have a secure border. DExEU continues to work with HMRC to understand the impacts of a range of future customs relationships with the EU.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential effect of the UK not agreeing a deal with the EU on the automotive industry.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
The Secretary of State has regular discussions with his Cabinet colleagues on a range of issues.
The UK’s automotive industry is world leading. Global demand for UK designed, engineered, and manufactured vehicles is strong. Both the UK and the EU share a strong commercial interest in preserving integrated supply chains, including those that support just-in-time production across the automotive sector.
We are determined to ensure that the UK continues to be one of the most competitive locations in the world for automotive and other advanced manufacturing.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what plans ministers in his Department have to visit ports in Wales.
Answered by Suella Braverman
A number of UK Government ministers, including the Secretary of State for Wales and the Minister for Security, have visited Holyhead to discuss the impact of EU exit on the port. UK Government officials continue to work with port operators, key stakeholders, and the Welsh Government, to ensure that traffic continues to flow freely at ports in Wales once the UK has left the EU.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what the options for an agreement on the terms for the UK's financial services industry after the end of the transition period are.
Answered by Robin Walker
Earlier this year, the Prime Minister set out the UK’s vision for its future economic partnership with the EU at Mansion House and the Chancellor detailed how this would work for financial services during a speech at HSBC.
We will be seeking a bold and ambitious free trade agreement between the UK and the EU. Such a deal will be of greater scope and ambition than any such agreement before it, so that it covers sectors crucial to our linked economies such as financial services. This will require detailed technical talks, but as the UK is an existing EU member state, both sides have regulatory frameworks and standards that already match, with full alignment on Day One of our exit.
As the Prime Minister set out, we will not be seeking passporting, because we understand this is intrinsic to the single market of which we would no longer be member. Also, the Chancellor has been clear that a deal based on the EU’s existing third-country equivalence regimes would be inadequate for the scale and complexity of UK-EU trade.
Instead, given the highly regulated nature of financial services, and our shared desire to manage financial stability risks, we will need a collaborative, objective framework that is reciprocal, mutually agreed, and permanent and therefore reliable for business.
The Government has said that the principle of mutual recognition and reciprocal regulatory equivalence, provided it is objectively assessed, with proper governance structures, dispute resolution mechanisms, and sensible notice periods for market participants, could provide an effective basis for such a partnership.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what assessment his Department has made of the (a) short-term and (b) long-term risks to the UK financial services after the UK leaves the EU.
Answered by Suella Braverman
The Government is undertaking a wide range of ongoing analysis in support of our EU exit negotiations and preparations.
We have been clear in our ambition to agree a broad and comprehensive trade agreement with the EU, which should cover financial services and protect the role of the City of London as a top global financial centre in the future. In March this year, London was named once again as the world’s leading financial centre; we are committed to maintaining that position.
We have also been clear that a good deal on financial services is in the mutual interest of the UK and the EU. Firms across the EU will continue to want to access the unrivalled depth and breadth of London’s capital markets.
We will also seek to establish strong cooperative oversight arrangements with the EU and will continue to support and implement international standards to continue to safely serve the UK, European and global economy. It is in both sides’ interests to ensure that we agree oversight arrangements that promote the maintenance of financial stability.
The Government has previously confirmed that when we bring forward the vote on the final deal, we will ensure that Parliament is presented with the appropriate analysis to make an informed decision – in relation to all sectors of the economy, including financial services.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what assessment his Department has made of the potential risks to the economic sustainability of the financial services sector in each constituent part of the UK after the UK leaves the EU.
Answered by Suella Braverman
The Government continues to undertake a wide range of ongoing analysis covering all constituent parts of the UK to inform the UK’s position for the negotiation with the European partners. A key part of that understanding is the differences across the UK and across all sectors of the UK economy.
We are committed to positive and productive engagement with the devolved administrations, local government and businesses as we seek a deal that works for the entire UK. Ministers and senior officials meet with financial services firms across the UK; Parliamentary Under Secretary of State, Robin Walker, recently met an insurance firm in Cardiff to discuss how EU exit will impact their company and the Welsh financial services sector. Financial services firms in all parts of the UK benefit from access to the European market and as we seek to negotiate our Future Partnership we will continue to engage all parts of the country.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what the (a) Government and (b) EU position is on the enforceability of financial contract continuity after the UK leaves the EU.
Answered by Suella Braverman
There is a shared interest for both the UK and the EU in ensuring that we avoid outcomes that impose unnecessary costs and disruption on individuals and firms as we leave the EU. The Government and the EU both recognise that our exit has the potential to impact the continuity of service provision. We have been clear that a deep and ambitious future partnership covering financial services – in combination with an agreement on a time-limited implementation period – is the best way to mitigate these risks.
The Government announced on 20 December 2017 that we will legislate, if necessary, to ensure that contractual obligations of EEA firms contracting with UK customers, such as those found in insurance contracts, can continue to be met. This would apply to in-bound firms only – the UK Government believes it in the interest of businesses and consumers in both the UK and the EU to ensure reciprocal arrangements are in place.
We are working, together with our regulatory authorities, to provide assurances for firms and consumers that we will deliver an orderly exit from the EU. We also welcome the fact that the European Central Bank and the Bank of England have recently agreed to convene a technical working group to mitigate risks to financial services posed by our exit from the EU. While this working group is separate from the ongoing negotiations with our European partners, it provides an opportunity for UK and EU authorities to discuss risks, gives reassurance for firms, and allows UK and European financial services regulators to work together to ensure a smooth and orderly exit.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what training his Department has provided to (a) general civil servants, (b) fast stream civil servants and (c) senior civil servants on understanding the scrutiny and legislative roles of the UK Parliament; how many such courses have taken place; and how many civil servants have attended such training courses in each of the last five years.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
All civil servants have access to the central learning offer provided through Civil Service Learning. There are one-day workshops on Understanding Parliament, which are delivered at Foundation (introduction) and Practitioner (advanced) levels. Both of these workshops cover Parliament’s scrutiny and legislative roles. The Department for Exiting the European Union has delivered the Understanding Parliament Foundation and Practitioner training courses to 66 staff since April 2017.
As part of a blended approach to delivering training, and providing resources to help individuals while on the job, Civil Service Learning provides online resources, such as weblinks, guides and videos. There is an e-learning course on Understanding Parliament, and access to two comprehensive Open Online Courses (on Understanding Parliament and Select Committees) which have been produced in partnership between the House of Commons and Future Learn, a digital education platform owned by the Open University.
Fast Stream civil servants receive a Parliament workshop during their induction, covering the role of Parliament in scrutinising government policy. All Fast Streamers are expected to have attended this induction. For Policy Professionals, there is an optional workshop which focuses on the legislative process in both Houses, typical timetables and roles of Ministers, Bill Teams and civil servants in delivering legislation.
For Senior Civil Servants, a tailored one-day workshop, Leading in Parliament, is available, which covers Parliament’s role, powers and relationship with government, the day-to-day work of MPs and Peers. A workshop delivered jointly between Civil Service Learning and HM Treasury is provided for Accounting Officers. Civil Service Learning provides a workshop specifically for Senior Responsible Officers with responsibility for secondary legislation. Every department has an SCS Parliamentary Champion and there is a buddy system in place between Parliamentary Champions and senior House staff.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what training his Department has provided to (a) general civil servants, (b) fast stream civil servants and (c) senior civil servants on devolution and inter-governmental relations; how many such courses have taken place; and how many civil servants have attended such training courses in each of the last five years.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
The Department for Exiting the European Union has delivered the Devolution and Intergovernmental Working training courses on 11 occasions, to 74 staff since April 2017. A breakdown by grade is not available. These courses form a suite of learning and development opportunities within the Department for Exiting the European Union.
Introduced in 2017 as part of Fast Stream policy learning, Fast Streamers take part in a mandatory Devolution workshop as part of their Induction offer. Fast Streamers are also required to complete the online 'Devolution and Intergovernmental Working' e-learning product as mandatory e-learning within their first year on the Fast Stream programme. All Fast Streamers within the Department for Exiting the European Union are expected to have undertaken both the e-learning and induction workshop.
Civil Service Learning provide a range of central learning opportunities, including online and face-to-face training, for all civil servants on Devolution & Intergovernmental Working.
The online Devolution & Intergovernmental Working module is for all new and existing civil servants, launched in November 2016. Through four online tutorials, video interviews with senior civil servants, and ‘take back to the office’ activities, it explains how the different governments operating in the UK work together, covering devolution settlements, decentralisation, City Deals and intergovernmental relations, as well as the ‘Devolution Memorandum of Understanding and Supplementary Agreements’.
The half day face-to-face Devolution & Intergovernmental Working workshop is also available to all civil servants. Building on the above online module, delegates learn from experienced professionals who have worked on a range of devolution matters about topics such as confidentiality, when to seek legal advice and the boundaries of devolution, where reserved and devolved powers meet.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what recent discussions he has had with the EU on maintaining membership of the EU’s Internal Energy Market after the UK leaves the EU.
Answered by Robin Walker
At the March European Council the EU adopted guidelines on the framework for the future EU-UK relationship. Discussions on the future relationship are now being taken forward.
As the Prime Minister set out in her Mansion House speech, while any agreement on our future relationship with the EU must respect the sovereignty of both the UK’s and EU’s legal orders, the UK would like to secure broad energy cooperation with the EU, including exploring options for the UK’s continued participation in the EU’s Internal Energy Market.