European Council

Lord Newby Excerpts

Monday 23rd October 2017 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, we are grateful to the noble Baroness for repeating the Statement. It serves to remind us how interlinked with the EU we are on so many issues, as she outlined. It is not just about having common interests; we are co-dependent on issues that affect not just our economy, but our safety, security and well-being as a nation. We also add our appreciation for the work of the Royal Navy for intercepting criminals involved in people trafficking and smuggling, and for the lives it saves.

At a previous European Council summit in June 2015 the former Prime Minister, David Cameron, said that the digital single market,

“is a prime example of where we need the EU to unlock the potential”,

of the,

“single market for the benefit of businesses and consumers”.

Since then, we in the UK have played a leading role in the EU’s approach. That has clearly been of great benefit, given the comments in the Statement, but can the noble Baroness tell us how we will continue to play that role in shaping policy, given that we will no longer have a seat at the table?

Important progress has been made since the last summit on security and defence across a number of areas, including cybersecurity, which is essential across Europe and here at home. Amber Rudd, as Home Secretary, has been very clear that it is totally unthinkable that we could crash out of the EU with no ongoing arrangements on those issues, yet David Davis, as Brexit Secretary, still maintains that leaving the EU without any deal must remain an option. Liam Fox is adamant that there will not be the Armageddon some have predicted, which implies that all will be okay. It will not. Surely we should aim for better than it just not being Armageddon. Will the noble Baroness clarify that, if no agreement were to be made on the key issues and we crashed out of the EU in what has been described as the no-deal scenario, it would not be business as usual on defence, security or policing? Does she accept that that scenario is the worst possible outcome and totally irresponsible?

Leading into this summit, the Prime Minister’s Florence speech was helpful. We welcomed the change in position and tone, but we await the details. She will be aware of the very deep unease from businesses about what the transition or implementation deal will look like. The importance and seriousness of this is highlighted by the strongly worded letter to the Government from the CBI, the Institute of Directors, the British Chambers of Commerce, EEF—the Manufacturers’ Organisation—and the Federation of Small Businesses. Surely even the most ideological and ardent of Brexiteers recognises the legitimacy of their concerns. With investment being held back, their warnings about the future of the economy must be heeded.

The transition period is now accepted by most as essential. I am happy to call it an implementation period if that helps. I also welcome the Government’s recognition of the so-called divorce bill, without which we cannot make any significant progress. However, the negotiations are complex. The Prime Minister is right to seek out opportunities for more informal discussions as well.

David Davis, the Brexit Secretary, was mocked in the House of Commons last month when he said that no one said Brexit would be easy. Yet that is exactly what Ministers, including him, said. Yesterday, Liam Fox defended his comments that securing a post-Brexit trade deal would be the “easiest in history” because apparently he was talking only about trade and the real problem is politics. Today, Boris Johnson jumped in feet first, as usual, telling EU leaders to “get on with it”. Perhaps Liam Fox is right that politics is the problem—not the politics of the EU, but of the Cabinet. There is no doubt that the progress so far is inadequate for the talks to move on formally to the next stage.

In recognition that some progress has been made, it has been agreed that preliminary talks about the next stage of negotiations should start. In effect, these are talks about talks. That is not, as some in the Cabinet appear to prefer, the EU being difficult; it is quite the opposite. What makes the negotiations harder for the Prime Minister is not the European Union, but her own Cabinet. Every time they speak out to contradict her, every time they speak out to attack the EU, the process or the progress, every time they fly yet another kite about what they think will win them votes in the next Tory leadership election, they seriously weaken her authority and undermine her ability to negotiate. The prime aim of negotiations is clarity about objectives, but for that the Prime Minister needs the Cabinet to unite or to choose one that will.

When Boris Johnson asserts that,

“the entire British cabinet is united around every dot, comma, and syllable of the Florence speech”,

we know he says that in full knowledge of the limits of his own credibility. That is also undermined by the Cabinet Minister quoted today in the press as saying:

“We haven’t grasped the nettle on the trade deal yet and we really have to soon. Theresa’s fear is that the moment we do, half of us will walk out—we just don’t know which half it will be”.


Such division and dysfunction at the heart of government weakens the UK’s position at every single point in negotiations. Given all that, we understand why the withdrawal Bill is now stalled. Can the noble Baroness give us any idea when it will be picked up again and when its Committee stage will start in the House of Commons, given the importance of the issues in the Bill?

On the three issues in the conclusions of the summit, first, we welcome the progress being made on citizens’ rights. It has taken far longer than necessary and the Prime Minister should recognise the urgency and bring it to a conclusion. Secondly, despite the optimism in the Statement, the progress on the Irish border seems a recognition of the issues that have to be resolved rather than a way of resolving them. Agreement on those principles is welcome, even essential, but it is the action that brings those principles into being that is important. What progress has been made on that?

The financial obligations—the divorce bill—are becoming confusing. The Prime Minister put a figure on the financial obligations in her Florence speech. Is there now a recognition that that is not the final word and it has yet to be negotiated? Finally, can the noble Baroness confirm that when David Davis talks about the timetable of the talks being “Barnier’s timetable”, it is in fact the timetable that he agreed back in June? It is as much David Davis’s timetable as it is Michel Barnier’s. I hope the noble Baroness will take the message back to the Cabinet that the frustration—not just of Parliament but of the whole country—with its antics is making it harder for the Prime Minister, and that she will be able to answer the questions I have raised today.

[Lord Newby (LD)]

My Lords, during the past week the Prime Minister has adopted two novel negotiating tactics. First, she decided on a personal diplomatic mission to the Commission, to be conducted over dinner. Yet according to reports, the meal lasted only just over an hour, which was barely enough time for a leisurely pizza, far less the sort of event that was likely to commend itself to the President of the European Commission. What was the purpose of this event, given its brevity and the lack of any new substantive proposals made at it by the Prime Minister? Secondly, the Prime Minister adopted the stance, “Please give me a good deal because my domestic parliamentary position is so weak”. Is the noble Baroness aware of any successful negotiations in which pleading one’s weakness has strengthened one’s hand? Do the Government really believe that the threat of no deal is credible, when the Brexit Secretary has described it as in effect a negotiating ploy just left on the table for the time being and the Home Secretary has called such an option simply untenable?

One of the first issues debated at the summit was the digital single market. The Prime Minister says that,

“it is right to keep up the pressure on completing its implementation … This will continue to be of benefit to us even after we leave the European Union”.

But we will not be members of the digital single market, so it is inconceivable that we will be as well off in respect of it outside as we would inside. What commitment are the Government prepared to make that, outside the EU, they will adopt the standards and regulations of the digital market so that we will gain the benefit of it?

The Government say that they welcome the EU sanctions on North Korea—as does the whole House. We are shortly to get a sanctions Bill in your Lordships’ House to deal with the position post Brexit, under which we will take control of and have sovereignty over own sanctions, but does the noble Baroness agree that, on matters such as North Korea, such sanctions are effective only if we are in lock-step with the EU so that a common front is presented to the North Koreans, or against whomever else such sanctions are adopted? Have the Government given any thought to what sort of mechanism they will put in place to ensure that, as far as sanctions are concerned, it is possible to adopt that kind of lock-step? At the moment, it is completely unclear how that will be achieved.

The Prime Minister states that, up to now:

“Both sides have approached these talks with professionalism and a constructive spirit—and we should recognise what has been achieved to date”.


That is undoubtedly true, but we should also recognise what has not been achieved to date. Last week should have been the point at which substantive progress had been achieved on the three matters which it had been agreed would be prioritised so that we could get on to discussing the future trading and other relationships with the EU, but the truth is that we are nowhere near that point. At best, we might have reached it by the end of December, in which case substantive negotiations on all future aspects of our relationship will not start until January, a mere few months before those negotiations must be completed.

On citizens’ rights, one of the individual issues that have caused the hold-up, the Government come out with warm words, but why have they not simply given an unequivocal commitment that they will protect in full the rights of all EU citizens now? The Government say that we are making great progress and that we are almost there, but we do not know that and, certainly, the 3 million EU citizens in this country do not believe it. They retain a huge degree of scepticism about their status going forward. This is to be “settled status”, which we are told is going to be done easily and cheaply, but what time period have the Government in mind to grant settled status to more than 3 million EU nationals in this country? What resources are available? Are they satisfied that the Home Office and the Immigration Service have either the track record, the ethos or the resources to do this in a fair and expeditious manner?

On Northern Ireland, the principles are all agreed. We want—the Government want and the Irish want—a frictionless border. However, we have had a customs White Paper which should really have been a Green Paper because it asks as many questions as it answers. It said, for example, that more than 80% of north-south trade was by SMEs and there will be no requirement for customs processes at the land border. That sounds rather reassuring, but the weasel words are “at the land border”. What sort of processes do the Government have in mind not at the land border, and what kind of costs do they think SMEs are going to have to incur to establish these processes? In what degree of detail have the Government, somewhere in their mind, any sense of what these processes might look like?

On the financial settlement, absolutely no progress whatever appears to have been made last week.

Finally, the Prime Minister spent quite a bit of her Statement under the heading “Moving forwards”, which is quite an achievement, given that there has been virtually no moving forwards. She says that she wants to leave in a smooth and orderly way. One key element of leaving in a smooth and orderly way is to transpose all existing EU law into domestic law. The withdrawal Bill, a relatively straight Bill in concept, is totally bogged down because of divisions in the Cabinet. What can the noble Baroness say about when she expects that Bill to start in the Commons, far less here? Because once it has gone through, and with a bit of luck it might be done by Easter, we will have 1,000 statutory instruments to get through before we are in a position to begin to contemplate withdrawal in a smooth and orderly way. There is nothing in this Statement to give any objective observer any sense that smooth and orderly is the way that this Government are heading.

[Baroness Evans of Bowes Park]

I thank the noble Baroness and the noble Lord for their somewhat gloomy assessment of where we have got to. I hope that during the course of my remarks I will show that, actually, we have made progress at this European Council and that some of the comments made were not a fair reflection on where we have got to and the progress we have been making.

However, I begin with digital, which both the noble Lord and the noble Baroness raised. They are absolutely right that we have played a key role in this area, and in fact our leadership and engagement has continued to deliver concrete results since the referendum. The geo-blocking regulations made rapid progress to reach general approach in council and the portability regulations have reached agreement in near record time, largely thanks to the UK’s involvement. At this summit all the leaders agreed that the free flow of data initiative is critical, but of course this is not just an EU issue, it is an international issue. The single cyberspace is global and therefore we will continue to play an important role with all our international partners in this area. We are absolutely clear, as is the EU, that digital data and cyber will be key areas for our future partnership and we want to continue the work we have done together.

I assure the noble Baroness that we are engaging very closely with business. Indeed, the fact that we want our departure to be as smooth as possible is one of the key reasons behind the Prime Minister’s proposing a strictly time-limited implementation period based on the existing structure of EU rules and regulations. We do not want British businesses to face a cliff edge. We are certainly cognisant of the concerns of business, we are having continual discussions and that is what lies behind that section of the Prime Minister’s Florence speech.

The noble Baroness and the noble Lord both raised the withdrawal Bill. It has not stalled. No date was ever set for Committee in the House of Commons. It was never announced. Of course, with some 300 amendments and 54 new clauses being proposed, it is only right that the Government evaluate these and ensure that they have a suitable response. I know that in this House your Lordships would expect us to take all your Lordships’ concerns extremely seriously so it is good to see the Commons are taking the same approach as we do here.

As I said, I do not recognise the gloomy outlook presented by the noble Baroness and the noble Lord. We did make progress and we have moved forward. For instance, the Taoiseach said he thought the Prime Minister’s speech was “very positive” and:

“I thought it was very good. The language was the right language. It was very strong”.


Chancellor Angela Merkel said:

“In contrast to how it is portrayed in the British press, my impression is that these talks are moving forward step by step”.


The Polish Prime Minister and the Swedish Prime Minister both said that progress has been made and that the Prime Minister’s Florence speech has helped move things forward.

Of course, we very much welcome that the EU has decided to start its own preparatory work on how it sees the future relationship working, as that will allow us to accelerate talks once it is ready to join the conversation. We have always been clear that the issue of sufficient progress and the sequencing of events has been an EU construct, not a UK one. Our position has been clear: the issues around withdrawal and our future relationships are inextricably linked.

The noble Lord asked about sanctions against North Korea. He is absolutely right that we have been working very closely with our EU partners. Again, the approach and response to North Korea is a global one, which is why we have been at the forefront of international efforts to ensure full enforcement of UN sanctions against North Korea, and are working with international partners to maximise the diplomatic and economic pressure on it to change its course. We will of course continue to do that.

Finally, the Prime Minister could not have been clearer—and the Statement made it very clear—that citizens’ rights is a priority for us. We have committed to no longer requiring EU citizens settling here to demonstrate comprehensive sickness insurance, as they have to under EU rules; to keeping the cost of the settlement process a low as possible; to establishing a simple process to allow people who already have permanent residence to swap this for a new settled status; and to setting up a new user group to include representatives of EU citizens in the UK and digital technical experts to make sure that the process is transparent. In the fourth round of talks, we offered the guaranteed right of return for settled citizens in the UK in exchange for onward movement rights for British citizens currently living in the EU. We have put forward a comprehensive package on EU citizens because we recognise—and have said time and again—how valued they are in this country and we want that relationship to continue. We are now waiting for the EU to come back with its response.