European Union (Withdrawal) Bill

Lord Grocott Excerpts

Report: 1st sitting: House of Lords
Wednesday 18th April 2018 Lords Chamber

[Lord Kerr of Kinlochard]

At paragraph 4 of their guidelines, they say that it is the UK’s positions,

“which limit the depth of such a future partnership”,

and that:

“Being outside the Customs Union and the Single Market will inevitably lead to frictions”.


But they also say at paragraph 6 of their guidelines that if the UK’s positions on the customs union and the single market,

“were to evolve, the Union will be prepared to reconsider its offer”:

in other words, to improve its offer. We do not know how far-reaching such improvements would be but, if we go on refusing to allow our negotiators to explore the idea of a customs union, we will never find out, and that in my view will be irresponsible—hence the wording of the amendment. I do not recall at the time of the referendum any debate about a customs union.

[Lord Grocott (Lab)]

My Lords—

[Noble Lords]

No!

[Lord Grocott]

I say yes. I think that the noble Lord has agreed to give way and I am very grateful. My point is specifically about the amendment. Are we not allowed to intervene with a question on the amendment?

[A noble Lord]

It has not been moved yet.

[Lord Grocott]

What I have to say may affect the decision as to whether or not to move it. My question is specifically about the wording of the amendment, which says—

[The Countess of Mar (CB)]

My Lords, the noble Lord should be allowed to develop his arguments. The amendment is not on the table yet—it has not been put by the Speaker. So I ask the noble Lord, out of courtesy, to let the noble Lord, Lord Kerr, finish speaking.

[Lord Kerr of Kinlochard]

Perhaps I may continue. I recall no debate at all at the time of the referendum on a customs union. The country voted narrowly to leave the European Union, but no one can argue that it voted knowingly to leave the customs union with the European Union.

The red line was laid down in October 2016 in the “citizens of nowhere” speech. One hears that there had not been much discussion in the Government; there certainly had been no discussion with Parliament. One wonders to what extent the economic consequences of the decision on customs union had been fully assessed and analysed within the Government; I have no idea. Other red lines have since been sensibly blurred; in my view, it is time to blur this one.

The House knows that I was and remain a keen remainer. I believe that, when a deal is struck, the country should be given a chance to say whether it is what it wants. That would be fair, but it is nevertheless our duty to help improve the deal and see how it could be made better. If in the end we do leave, it should be in a way that limits the damage to the country’s well-being and to the future of our children. That is why I believe that it makes sense for the Government to be asked to explore customs union. I beg to move.

[Lord Grocott]

I simply wanted to ask for information on the wording of the amendment, which requires the Government to put a statement to both Houses about the contents of an agreement on a customs union. I simply want to ask this: if such a statement is presented to both Houses, as his amendment requires, and if the House of Commons says yes and the House of Lords says no, what happens next?

[Lord Kerr of Kinlochard]

Am I allowed to respond? I thank the noble Lord for his question. The Government would be required to negotiate for a customs union and make a statement about the outcome of the negotiations, which would be before the withdrawal implementation Bill came to the House. It seems to me that the requirement on the Government is simply to negotiate. I may be wrong about the willingness of the other side to envision a customs union—we cannot require the Government to come back with a customs union—but we can require the Government to explain how hard they have tried and what kind of customs union they think might be available.