European Union (Withdrawal) Bill

Baroness Morgan of Cotes Excerpts

Thursday 7th September 2017 Commons Chamber

[Keir Starmer]

I am obviously a very bad communicator: I thought I was suggesting that workplace rights, environmental rights and consumer rights should only be capable of being taken away by primary legislation. If there is any doubt, I can assure the hon. Gentleman that when I say primary legislation I mean legislation in this House; I thought that was taken as read.

[Nicky Morgan (Loughborough) (Con)]

Does not the last intervention point to the fundamental misunderstanding that some have about this Bill—and I am afraid the Secretary of State mentioned it earlier? The point is whether the UK is going to become a rule-taker rather than a rule-maker. Our membership of the European Union has allowed us to influence the directives and regulations which have then been taken on board in this House and through our laws. What we are doing in this Bill—I will expand on this in my remarks—is not repealing, but reintroducing European legislation into this country, contrary to the intentions of those who wanted to leave the European Union.

[Keir Starmer]

I am grateful for that intervention and agree with it.

May I move on to other rights, because they are dealt with more severely? Clause 5(4) singles out the charter of fundamental rights for extinction. There are thousands of provisions that are being converted into our law and will have to be modified in some cases to arrive in our law, but only one provision in the thousands and thousands has been singled out for extinction—the charter of fundamental rights. As the right hon. and learned Member for Beaconsfield (Mr Grieve) argued in an article published yesterday, the principles of the charter provide

“essential safeguards for individuals and businesses”.

That has been particularly important in the fields of LGBT rights, children’s rights and the rights of the elderly.

The Secretary of State asks why this matters. I have here the High Court judgment in the case of David Davis MP, Tom Watson MP and others v. the Secretary of State for the Home Department. This was in 2015, when the present Prime Minister was Home Secretary. David Davis the Back Bencher was bringing to court the now Prime Minister. He will recall that he was challenging the provisions of the Data Retention and Investigatory Powers Act 2014. He was concerned that they would impinge on the ability of MPs to have confidential communications from their constituents. He continued to make that point in debates that we were having a year or two ago. In his argument, he cited the charter. His lawyers made the argument that the charter was important because it went further than the European convention on human rights and therefore provided added protection.

I will not read out paragraph 80 of the judgment, although I am sure that the Secretary of State is familiar with it. As he knows, the Court found in his favour—he was right: the charter did enhance his rights—and rejected the arguments of Mr Eadie, the distinguished QC representing the then Home Secretary, now the Prime Minister. So when the Secretary of State asks whether this move will make any difference, the answer is yes. We can see that from his case. I suspect that if he were still on the Back Benches, he would now be talking to me and others over a cup of coffee about how we should fiercely oppose clause 5(4) and ensure that it came out of the Bill.

--- Later in debate ---

[John Redwood]

I am afraid that time is now rather limited.

I am very much in favour of our Parliament making these decisions. The admirable principles we are discussing will often be reflected in British law. They are already reflected in many of the bits of legislation that are the subject of this Bill, and our judges will often be informed by them. If the judges start to use a principle that we do not like very much, it is in the hands of those of us who are in Parliament to issue new guidance to those judges— to say that we are creating more primary legislation to ensure that we have a bit more of this principle and a bit less of that—on our area of disagreement with them. In a democracy, it is most important that we have independent courts, but also that, ultimately, the sovereign people through their elected representatives can move the judges on by proper instruction; in our case, that takes the form of primary legislation.

Much has been made of how we implement whatever agreement we get, if we have an agreement, at the end of the now 19-month process in the run-up to our exit on 29 March. I think people are making heavy weather of this, because the main issue that will eventually be settled—I fear it will be settled much later than the press and Parliament would like—is how we will trade with our former partners on the date on which we depart.

There are two off-the-shelf models, either of which would work. In one, the EU decides, in the end, that it does not want tariffs on all its food products and cars coming into the UK market, and it does not want us creating new barriers against its very successful exports, so it agrees that we should register our existing arrangements as a free trade agreement at the World Trade Organisation. That would be a ready-made free trade agreement.

I do not think that there is time to make a special free trade agreement that is not as good as the one we have at the moment. Either we will have the current arrangements, as modified for WTO purposes, when we are outside the Union, or we will not. If we do not, we will trade on WTO terms when we are on the other side of the EU’s customs and tariff arrangements. We know exactly what that looks like, because that is how we trade with the rest of the world at the moment as an EU member.

The EU imposes very high tariff barriers on what would otherwise be cheaper food from the rest of the world, but if it decided on that option, its food would, of course, be on the wrong side of that barrier as well. We would have to decide how much we wanted to negotiate tariffs down for food from other countries around the world, which may offer us a better deal. It would be quite manageable; food is the only sector that would be badly affected by the tariff proposals under the WTO. More than half our trade would not be tariffable under WTO rules, and services obviously attract no tariffs. I have yet to hear any of the other member states recommend imposing tariffs on their trade with us, or recommend a series of new barriers to get in the way of other aspects of our trade. We will have to wait and see how that develops.

[Nicky Morgan]

Is my right hon. Friend saying that one of the largest and most basic amounts of its income that any household spends—the part that it spends on food—could be affected by these proposals, but that that is okay?

[John Redwood]

I am saying that either way, we could get a good deal. If the EU decides that it wants to impose tariffs on its food exports to us, we will be able take tariffs off food that comes from other parts of the world. Under WTO rules, it is always possible to take tariffs off. We could start getting from the rest of the world food that is cheaper than that which we currently get from the EU, even though it does not attract tariffs. I want to look after customers.

The other thing is that if we just accepted the full WTO tariff rules, we would have about £12 billion of tariffs, and I would recommend that all of that £12 billion be given back to our consumers. They would be no worse off at all, because we would return the money to them. They might even be better off, if we did free trade deals that brought down the price of food from other parts of the world.

My final point to the Government is that there is an issue about how we decide the date of our departure. I think it is clear that our date of departure will be 29 March 2019. It will definitely be so if we do not have an agreement, which is still quite possible, but I think we should aim to make sure that we leave on that date even if we do have an agreement. We still have 19 months left, and that should be the transition for most of the things that need it. That is, surely, what the time is there to achieve. I recommend that we have the argument of substance over that date now, and that it be put in the Bill now. I recommend very strongly that we aim for 29 March 2019, because in one scenario that will be the date of our exit anyway, and in any other scenario it would be highly desirable.

People are always telling me that we need to reduce uncertainty. If we told them not only that all the laws would remain in place—getting rid of any uncertainty about the law—but that the date of our exit would definitely be 29 March 2019, we would have taken a lot of uncertainty out of the system. I think that that would be very welcome. I find that businesses now, on the whole, just want to get on with it. They are very realistic, and they want to know what they are planning for. They have got some of the details, but they want as many details as possible. If we put that firm date in, we would make it easier still, so I would recommend that change to the Government.

--- Later in debate ---

[Nicky Morgan (Loughborough) (Con)]

I congratulate the new hon. Member for Canterbury (Rosie Duffield) on an excellent and confident maiden speech. I was sorry to hear about the online abuse that she has already experienced but pleased to hear about the support she has received. She talked about unity and togetherness, and she might have found the House at a challenging time for such things, but we will hopefully find a way through these debates. Her predecessor was a doughty champion of the armed forces, about which he spoke often in this House.

So it starts—the real process for getting us out of the European Union. The Bill is needed. It is needed legally to disentangle us and to make many people really believe that we are actually going to leave the European Union, something that I have not had difficulty believing. Like many colleagues who share my views, I have been clear since 24 June 2016 that it was going to happen because, as the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) said, we believe in democracy in this House of Commons. However, the Bill contains two major ironies. First, as was said earlier, it is not a repeal Bill but a reintroduction Bill, and those who wanted to get away from EU law now seek to bring it all over here. Secondly, those who wanted to take back control showed no concerns about the amount of Executive power that will be wielded as a result of the Bill until a number of the rest of us started to highlight such issues, and they now claim to be happy with the amendments that might be discussed in Committee.

In the limited time available, I want to draw attention to two parts of the Bill that have already been discussed. It is worth putting them on the record again so that Ministers are in no doubt about the parts of the Bill that they are going to have to discuss with colleagues throughout the House and agree amendments to if they want the Bill to pass. The first is the Henry VIII powers in clause 9, which could theoretically bite on the Bill itself and allow Ministers to amend the very legislation that the House is now debating and being asked to assent to. We might ask why we are going through the troublesome and time-consuming business of getting the Bill into shape when Ministers can use clause 9 to reverse the changes they dislike with speed, efficiency and a minimum of parliamentary oversight. The Secretary of State’s response to the right hon. Member for Leeds Central (Hilary Benn), the Chairman of the Exiting the European Union Committee, about the fact that the withdrawal agreement should not be implemented until this House has had its say, is incredibly important.

[Anna Soubry]

Will my right hon. Friend advise ardent leavers, possibly those on the Government Benches, that there is a real danger that the amount of money that might be paid to the European Union by way of what we call this divorce bill could be decided by the Government without report or redress in this place by virtue of clause 9?

[Nicky Morgan]

I thank my right hon. Friend for that intervention. She is absolutely right. As a former EU budget Minister, I can say that money will be paid to the European Union, and I disagree fundamentally with the remarks of my right hon. Friend the Member for Wokingham (John Redwood). As one of our MEPs, Dan Hannan, said, this country pays what it owes. We have made financial commitments to the European Union until 2020, and we should pay what we owe. As the Secretary of State has said previously, we may well even decide to pay more towards some elements in order to have access to them, in particular Horizon 2020 and so on.

The second issue is the power for the Ministers to specify the date of the exit day, which will be subject to no parliamentary scrutiny procedure whatsoever. Interestingly, the Secretary of State started his remarks by saying that the Bill does not take us out of the European Union. I did think about intervening, but it was very early in his remarks and I thought that he might clarify things. The difficulty with what he says is that clause 1 baldly states:

“The European Communities Act 1972 is repealed on exit day.”

If the 1972 Act is repealed, the UK leaves the European Union, so if this Bill is passed and its provisions are enacted, we will leave the European Union. Article 50 is a process for giving notice to start the discussions. I am afraid that the Secretary of State was not correct about that.

Why does scrutiny of statutory instruments matter so much? I suspect that Members have been having discussions with businesses and others who rely on EU law to go about what they do, and they are telling us very clearly that what will make their life easier and a transition possible is regulatory convergence, which means sticking to the regulations and rules we have been following for years, whether we are talking about pharmaceutical companies, financial services companies, food exporters, farmers, universities or many other different sectors.

To those who seek to say that we have been rule takers, not rule makers, I say that successive Ministers, including me, have sat at the European Council table and had those debates. The point is that if we want to have regulatory convergence after March 2019, which is what we are hearing, we will have to take the rules without having had any influence on them.

Finally, I am a proud parliamentarian, and the maiden speech of the hon. Member for Canterbury has just reminded me of how special it is to be elected to this place. Parliamentary scrutiny is not an affront to democracy; it is its very essence. The true saboteurs of Brexit are those who would sanction the exclusion of Parliament from this process. The debate on this Bill has only just started.