Future UK-EU Relationship on Professional and Business Services (EU Committee Report)

Lord Thomas of Cwmgiedd Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Thomas of Cwmgiedd (CB) [V]]

It is a pleasure and privilege to follow the noble Viscount, Lord Trenchard, and to agree with the praise with which he and other speakers have referred to the very able and skilful chairmanship of the noble Baroness, Lady Donaghy, in the report that we are now debating and in all the work that the committee did. I also add my tribute to the work of the staff and particularly to Dee Goddard.

Others have spoken at length about the importance of services to the UK, particularly financial services, accountancy, law, and the creative industries. It is now important to look forward. It is perhaps disappointing that the EU has so far refused to go much along the lines of what was hoped for, but I do not find that unsurprising, given that some see this as a competitive advantage to be snatched from the departure of the UK. However, we must look to the future, and it is the future on which we must concentrate.

First, it is vital that we get certainty on mutual recognition of professional qualifications and that the Bill is brought forward in a proper form in due course. Secondly, we must continue dialogue. My own experience—outlined in the declaration of interests in the register and in this report—shows that there is a great deal that we can do. Our accountancy profession, our legal profession and our financial regulators are highly respected across Europe, and I very much hope that we continue to push forward our dialogue. I have no doubt that that will be well received. Thirdly, it is important that we use that dialogue as part of what we must show for the future, which is leadership. The noble Baroness, Lady Donaghy, showed wonderful leadership on this committee, and the Government need to show leadership in showing what we can do to bolster our service industries by dialogue with Europe but also leadership across the world.

The noble Viscount, Lord Trenchard, spoke eloquently about the need for proper regulation, and it is important to stress that we have huge advantages here. We have an innovative spirit with which to approach regulation. We know how to avoid the kind of mistakes that led to Enron, and we have, above all, the advantage of a flexible legal system, particularly the common law, which is able to develop and buttress regulatory systems that operate to support innovation, to support the new economy that is emerging from the digital revolution and to take us forward. I very much hope that the Minister will be able to be encouraging about how he sees regulation and the service industries associated with it moving forward.