Lord Dunlop Portrait Lord Dunlop (Con)
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My Lords, I should start by confessing my membership of the Constitution Committee. I say “confess” because, as the noble Lord, Lord Beith, mentioned, Monday’s Daily Mail took the committee to task to some degree, describing it as a committee filled with “Remoaners”. As noble Lords may imagine, this came as something of a shock to me. I had not before realised this until I read it in the Daily Mailand I must say that it has shaken my faith in the Daily Mail as a paper of record.

This debate has been conducted in a generally constructive way. That is the spirit in which the Constitution Committee approached its task. Our report proposes,

“a number of practical measures to address the flaws in this Bill without jeopardising the achievement of its objectives”.

No matter how you voted in the referendum, “taking back control” is a powerful idea, so we should use this moment to strengthen our democracy and the sovereignty of this Parliament. Our report, I think, points the way. For example, it recommends that the Bill clarify—as the noble Baroness, Lady Taylor, and the noble Lord, Lord Norton, explained yesterday, and to which my noble and learned friend Lord Mackay of Clashfern gave his benediction today—the status of retained EU law as primary legislation replacing what the report describes as,

“the ill-fitting ‘supremacy principle’—a European legal concept”,

with the UK domestic principle of the primacy of the most recent Act of this Parliament. Where we can safely replace in this Bill the risk of confusion with greater clarity and European legal concepts with British ones, we should do so.

I will focus the rest of my remarks on the Bill’s devolution implications, which many other noble Lords have touched on. Like every unionist I want to ensure that, as we leave the EU, we do not inadvertently jeopardise our union of four home nations. Indeed, handled carefully and sensitively, the process of exiting the EU can strengthen intergovernmental relations within the UK and give our union a renewed sense of purpose.

In the case of Scotland, it is notable that, contrary to expectations, not least of the SNP Government, Scottish opinion has, if anything, swung against Scottish independence as the exit process has continued. The Bill confers on the devolved Administrations powers parallel to those of UK Ministers to correct deficiencies in devolved areas. Clause 11, however, amends the devolution statutes to restrict competence in relation to retained EU law.

Clause 11 has been criticised as a UK Government power grab and as offending a fundamental principle of devolution, where what is not explicitly reserved by the UK Parliament is devolved, as the noble and learned Lord, Lord Wallace of Tankerness, noted yesterday. The Government have explained Clause 11 as being transitional, to provide an orderly process for agreeing with the devolved Administrations where powers repatriated from Brussels are best exercised and what common UK frameworks are needed, and to do so in a way that both respects devolution and protects the integrity of the UK single market—a market which, in the case of Scotland, accounts for 63% of its trade.

As a former Minister with some recent involvement in these matters, I accept that I am perhaps more inclined than others to accept the Government’s assurances at face value. Certainly, the UK Government’s recent devolution record is not the behaviour of power-hungry centrists—quite the opposite. However, I also accept, like many others on all sides of the House, that Clause 11 needs amending. As one of the witnesses who gave evidence to the Constitution Committee put it,

“Clause 11 stacks the cards in favour of the centre”.

Clause 11 unamended would mean that if common frameworks cannot be agreed, the default will be that power remains at Westminster, and what is intended to be transitional will become permanent. We need a clause that is more balanced and which gives the UK Government and the devolved Administrations similar incentives to reach agreement. So I welcome the Government’s commitment to amend Clause 11, and to do so with the support of the devolved Administrations.

But in considering Clause 11, I hope the House will bear in mind two things. First, the 1998 devolution settlements were drawn up on the assumption of EU membership. As such, devolved Administrations are already constrained within their areas of competence. They cannot make law that is incompatible with EU law. As the noble and learned Lord, Lord Hope, noted in a debate last Thursday, removal of this constraint will leave a void, providing, as he put it,

“a wonderful opportunity to create something new”,—[Official Report, 25/1/18; col. 1102.]

in place of it. I agree very much with what he said. The need to replace the void should be interpreted not as rowing back on devolution but as a sensible step to ensure that the UK continues to work effectively as a whole outside the EU.

Secondly, just as we should avoid stacking the cards in favour of the centre, so we should also avoid stacking the cards in the opposite direction. If absence of agreement means that all powers flow, come what may, to the devolved Administrations, their incentive to reach consensus going forward will be weaker. Moreover, I do not believe that one part of the UK should have an effective veto over essential measures to protect the interests of the UK as a whole—interests that this Parliament exists to uphold.

I conclude on an optimistic note. The devolved Administrations accept that common UK frameworks are needed, and the UK Government recognise the importance of obtaining their legislative consent for the Bill. That is a good foundation on which to build agreement. I hope that it can be built quickly; I believe it can.