Brexit Negotiations

Lord Hannay of Chiswick Excerpts

Monday 11th December 2017 Lords Chamber

[Baroness Evans of Bowes Park]

The Prime Minister has said that the money we have discussed is in the context of agreeing our future partnership. We have also been very clear in setting out the valuations and we have agreed the important principles that will apply to how we rely on them. Further, we have agreed a fair settlement with the final bill estimated to stand at around £35 billion to £39 billion, which noble Lords will be aware is at least half of the reports we have had previously about how much money would be involved in the financial settlement. This is a good deal and it also means that we can begin to unlock the talks in order to start talking about the deep and special relationship and our future trading partnership.

[Lord Hannay of Chiswick (CB)]

My Lords, can the Minister respond to one point that occurs to me very sharply? The statement that nothing is agreed until everything is agreed seems to apply to all three pillars of this first-phase agreement. Is it really conceivable that the Government will take away the agreement that is reached on the status of EU citizens here and our citizens across Europe if there is no agreement? Is it their position that they will remove that? If that is the case, what assurance is being given to those 4 million citizens since they will then know that they will not have clarity until the last minute of the last hour of the last day of the negotiations?

Secondly, on the Irish issue, could not the Minister perhaps apply a common-sense rule which is that the text, it seems to me, states clearly that if there is no agreement, the regulatory alignment will apply in order to avoid a hard border? Is that the position, or is it also subject to being taken off the table if no agreement is reached?

[Baroness Evans of Bowes Park]

The Statement was very clear, and I hope that I was also very clear in my response to the noble Baroness and the noble Lord, that we all want to honour the agreements set out in the joint report. We have also said that the withdrawal agreement and implementation Bill, which we will bring forward, will set out what is in the withdrawal agreement—including citizens’ rights, any financial settlement and the details of an implementation period—which will be implemented directly into domestic law by primary legislation.

On Northern Ireland, the Statement made clear that we have agreed a fall-back option of last resort. We simply do not believe that we will be unable to find specific solutions to the border issue; we are confident that we will do so. If we cannot, the UK will maintain full alignment with internal market and customs union rules, which currently support north/south co-operation, economic co-operation across the island of Ireland and the protection of the Belfast agreement—and will do so in future. The joint report also clearly sets out that cross-community safeguards and consent are required from the Northern Ireland Executive and Assembly for any distinct arrangements in this scenario. As I said, we do not believe that it will come to that.