PARLIAMENTARY DEBATE
EU Withdrawal Agreement: Legislation - 24 July 2018 (Commons/Commons Chamber)
Debate Detail
On Friday 29 March 2019, the UK will leave the European Union, giving effect to the historic decision taken by the British people in the 2016 referendum. The Government are committed to delivering a smooth and orderly Brexit. That is why we have already passed the European Union (Withdrawal) Act 2018—[Laughter.] The shadow Foreign Secretary is laughing. She and her party voted against the Bill, thereby undermining her commitment to give effect to the referendum. We are ensuring that the statute book functions after exit, whatever the outcome of the negotiations. I am grateful to this House and the other place for the many hours of scrutiny devoted to that vital piece of legislation. We are now embarking on the next step in the process of delivering that smooth Brexit for the people and businesses of this country.
Since last June, the UK has been negotiating with the EU to decide on the terms of our withdrawal. We have made substantial progress—on protecting the rights of EU citizens in the UK and UK citizens in the EU, deciding the terms of the financial settlement and agreeing a strictly time-limited implementation period. Most of the withdrawal agreement—about 80%, according to the EU—has now been agreed with our EU partners, and we have isolated outstanding issues for further focused negotiation. I will be meeting Michel Barnier again on Thursday to take forward the negotiations at this critical time.
We have already agreed a financial settlement, estimated at between £35 billion and £39 billion, which is well below the figures bandied around by some when we started this negotiation. The implementation period will be finite and will allow for the negotiation and conclusion of free trade deals. Many of these arrangements will of course require new domestic legislation to deliver them into UK law. That is why, last November, we announced our intention to bring forward a new piece of primary legislation to implement the withdrawal agreement in UK law.
Today, we are publishing a White Paper setting out our proposals for this important legislation, which will be introduced once the negotiations have concluded and Parliament has approved the final deal. Our expectation is to reach agreement in October.
Under the terms of the European Union (Withdrawal) Act, Parliament will then have its say on the final deal. If it is approved, will we bring forward the legislation so that it can be in place for when we leave the EU on 29 March 2019. In setting out our proposals today, we are giving Parliament the opportunity to scrutinise our plans well ahead of the Bill’s introduction, given the need to enact the legislation in the time available and mindful of the importance of maximum scrutiny in this House.
By publishing the White Paper today, the Government are providing further certainty to people and businesses here in the UK and across the EU. It also sends a clear signal to the European Union that the United Kingdom is a reliable, dependable negotiating partner, delivering on the commitments it has made across the negotiating table. Of course, while we are making good progress, discussions are still ongoing in various areas, so some parts of the Bill will only become clearer as we settle the remaining parts of the withdrawal agreement. In the light of that, today’s White Paper focuses on those parts of the withdrawal agreement where the text is already agreed. I will take them in turn.
The UK’s first priority in negotiating its withdrawal from the EU was to reach agreement on the rights of citizens, including the 3.5 million EU citizens who live in the UK and who are valued members of their communities and play an integral part in the life of this country. Likewise, the approximately 1 million UK nationals who currently live in the EU are equally valued by their host countries and communities.
The agreement reached on citizens’ rights will allow EU citizens in the UK, and UK nationals in the EU, to live their lives broadly as they do now and enable families who have built their lives in the EU and the UK to stay together. The most important next step will be to provide a continued right of residence for those citizens. EU citizens lawfully residing in the UK on 31 December 2020 will be able to stay.
This month, the Home Office published further details about how EU citizens and their families can obtain settled status in the UK. That statement confirms that the settlement scheme will make it simple and straightforward for citizens and their families to secure long-term status in this country. The Bill will ensure that EU citizens can rely on the rights set out in the withdrawal agreement and can enforce them in UK courts. It will also establish an independent monitoring authority to oversee the UK’s implementation of the deal on citizens’ rights, thus providing further reassurance for citizens.
All EU member states must implement the agreement in full and provide certainty for UK nationals on the continent. As the Home Secretary stated recently, we now need to know more of the details of how each member state will fulfil its obligations and implement its side of the agreement. We will be pressing further for those details over the summer.
The next chapter of the White Paper deals with the strictly time-limited implementation period that the UK agreed with the EU in March. The UK will leave the EU on 29 March 2019. After that, the implementation period on which we have agreed will ensure that people and businesses will have to plan for only one set of changes as we move towards our future relationship. From 30 March 2019 until 31 December 2020, common rules will remain in place, with EU law continuing to apply, and businesses will be able to trade on the same terms as they do now. During that period, we will not be a member state and will have the flexibility that we need to strike new trade deals around the world—something that many argued we would not be able to achieve in the negotiations.
To legislate for the implementation period, we must ensure that the UK statute book continues to reflect the relevant provisions of EU law, as it applies to the UK during this time-limited period. As the House will know, the current mechanism for bringing EU law into UK law is the European Communities Act 1972. Under the European Union (Withdrawal) Act, the ECA will be repealed on 29 March 2019. As set out in the White Paper, the EU withdrawal agreement Bill will contain a time-limited provision so that parts of the ECA are saved until 31 December 2020. Those changes will ensure that our statute book functions properly throughout the implementation period, in accordance with the agreement that we have made with the EU.
Let me now turn to the financial settlement, the structure of which was agreed in December on the basis that it would sit alongside our future partnership. As we have said from the start, nothing is agreed until everything is agreed. That is in keeping with article 50, and in keeping with the guidelines that have been given to the EU for the negotiation. We will have a framework for our future relationship with the EU, alongside the withdrawal agreement, and our approach to that future partnership is set out in the White Paper that we published earlier this month. There must be a firm commitment in the withdrawal agreement requiring the framework for the future relationship to be translated into legal text as soon as possible. It is one part of the whole deal that we are doing with our EU partners. Of course, if one party fails to honour its side of that overall bargain, there will be consequences for the whole deal, and that includes the financial settlement.
In addition, we have agreed an obligation for both parties to act in good faith throughout the application of the withdrawal agreement. The White Paper published today explains that the EU withdrawal agreement Bill will include a standing service provision to allow the Government to meet the commitments of the financial settlement. In the interests of transparency and oversight, the White Paper also includes proposals to enhance the existing scrutiny arrangements for the payments made to the EU.
The White Paper sets out our approach to delivering the withdrawal agreement and the implementation period into law, and I look forward to discussing all its proposals with Members in all parts of the House. It is a necessary part of leaving the EU and ensuring a smooth and orderly departure. It gives EU citizens living here, and UK nationals abroad, clarity and certainty that their rights will be properly protected; it will enact the time-limited implementation period, giving businesses greater certainty and giving the public finality with respect to our relationship with the EU; and it provides for the appropriate means for paying the financial settlement. Above all, with 80% of the withdrawal agreement settled with our EU partners, the White Paper is another key milestone on the United Kingdom’s path to leaving the EU. I commend this statement to the House.
We will of course scrutinise the White Paper closely, but a quick reading reveals a number of important points. First, the gimmick of fixing exit day as 29 March 2019 in the European Union (Withdrawal) Act has already come unstuck. We warned at the time that it would not work and would need to be rubbed out and that large parts of the European Union (Withdrawal) Act would need to be amended. Here is the proof.
Paragraph 56 of the White Paper states that
“EU law will continue to have effect in the UK in the same way as now”
for the implementation period—that is, until December 2020—but section 1 of the European Union (Withdrawal) Act, which took 18 months to get through Parliament and received Royal Assent only 28 days ago, repeals the European Communities Act on exit day, 29 March 2019. The implementation Bill will amend section 1 of the withdrawal Act by saving the ECA, as the White Paper makes clear in paragraph 60. So the ECA is repealed, and before that comes into force, it is amended and saved. The Secretary of State says that just “parts of the ECA” are saved until 30 December 2020, but that is a huge understatement. Almost all of it is saved, with amendments not to the applicability of EU law, but to collateral issues.
However, not just section 1 of the withdrawal Act now needs major surgery. The other big ticket item in the Act was the much-vaunted “conversion of EU law” into our law—again, fixed by the gimmick of the date of 29 March 2019. We warned that that would not work, because the gimmick gets in the way, so it is going to be rubbed out. Paragraph 69 of the White Paper makes it clear that the conversion exercise is now not needed until December 2020.
Then, of course, there is the European Court. Just a few weeks ago, many Brexiteers cheered section 6(1) of the withdrawal Act, which would extinguish the role of the European Court on the fixed date of 29 March 2019. But not so fast: as we said at the time would happen, paragraph 80 of the White Paper preserves the full role of the European Court until December 2020. Again, the withdrawal Act will need major surgery.
I cannot remember legislation that has needed such great revision and amendment before the relevant parts have even come into force. Of course, the provisions of the withdrawal Act that have come into force relate to delegated powers. During the 18-month passage of the European Union (Withdrawal) Bill through the House of Commons, it was acknowledged that it contained sweeping provisions packed with Henry VIII powers. They were supposed to be strictly limited by a two-year sunset clause. The White Paper now proposes that those clauses should be extended: sunset is now December 2022. On the face of it, paragraph 75 of the White Paper suggests that if there is no deal, the huge exercise of amending what will be hundreds of legislative provisions will be carried out through delegated legislation. I hope that that is not true, and I look to the Secretary of State for reassurance that that is not the implication of paragraph 75.
Then there is the elephant in the room: if there is no deal, there is nothing to implement. Can the Secretary of State tell us what is the legislative plan, to be in place by March next year, if there is no agreement on citizens’ rights—the Secretary of State said a lot about them—on the financial settlement, on Northern Ireland and on many other issues? If there are not to be sweeping delegated powers, what legislation will there be, and when, between now and March 2019?
There was no mention of Northern Ireland in the Secretary of State’s statement, and there is just a brief reference to it in the White Paper. I appreciate that elements of the Northern Ireland agreement are still being discussed, but with nothing substantive on Northern Ireland, the White Paper contains a huge gaping hole.
There are proposals on the financial settlement. The Secretary of State now seems to be saying that the EU will have to fulfil its side of the bargain, or we will not pay up. We have been down this track before. The Chancellor has previously dismissed that approach by saying:
“That is not a credible scenario. That is not the kind of country we are. Frankly, it would not make us a credible partner for future international agreements.”
So which is it: has it been agreed, or are we back to conditionality?
I have heard what the Secretary of State says about the withdrawal agreement being reached by October this year, but he knows that he is in a minority here and in Brussels. If agreement is not reached until November or December, how will the Secretary of State ensure that there is proper scrutiny of the implementation Bill, and will he guarantee that it will not be packed with wide-ranging Henry VIII powers?
We have a White Paper and we have time to scrutinise it, but we also have serious questions that now fall to be answered.
On the right hon. and learned Gentleman’s point about the date of departure, I presume he welcomes and supports the implementation period. I have not heard any substantive suggestion how he might have done it differently; perhaps as he reflects he will have some, but otherwise calling the implementation period a gimmick when businesses have called for it and welcomed the certainty it provides is, I think, rather an indication that the Labour party is reverting to type.
The right hon. and learned Gentleman had nothing to say on citizens’ rights, nothing to say on welcoming the mechanism to secure the rights of EU nationals here and nothing to say on welcoming the mechanism to make sure UK nationals have their rights abroad protected. In relation to no deal, we will be prepared regardless of the outcome, as he knows. This is not the legislation being provided to that effect, as we are focused on getting the right deal for the UK and the EU.
In relation to Northern Ireland, the right hon. and learned Gentleman will have seen the White Paper on our future relationship with the EU and the arrangements for frictionless trade, which are not just important for businesses but will avoid any return to a hard border. Our position is that that provides a clear, workable model that maintains our commitments under the Belfast agreement and avoids any friction at the border, but also frees us up to strike free trade deals abroad.
On conditionality, the right hon. and learned Gentleman is a learned lawyer, but I have to say to him that as a matter of basic general international law, whether through the interpretation of treaties under the Vienna convention or customary international law, when countries sign up to a treaty, both sides must commit to the obligations on both sides; there is reciprocity. Of course, if one side fails to live up to its commitments, it is open to the other side to take proportionate measures, including in relation to financial means, to make sure good effect is given to the whole deal. That is what it takes to stand up for the interests of the United Kingdom; if the right hon. and learned Gentleman would roll over, it is a good job Labour is not handling the negotiations with the EU.
This White Paper is about delivering a smooth and orderly Brexit and one that respects the referendum. I gently say to the Opposition that it is not entirely clear that it is Labour’s overriding objective to give effect to the referendum. Straight after the referendum, the leader of the Labour party demanded the immediate triggering of article 50; with a similar lack of strategic foresight, Labour Members repeatedly voted against the EU withdrawal Bill, whose sole purpose was to deliver a smooth and orderly Brexit, including on Second Reading; and now the Labour party will not rule out a second referendum. It is clear that Labour Members are taking the opportunistic political low-ground, rather than rallying together to try to secure the best deal for the UK with our EU partners. The withdrawal agreement Bill is essential, and I hope that all who wish to see a smooth and orderly Brexit will support it and engage seriously on the substance.
I am left wondering what would have happened if the Government had had their way and the House had risen five days ago. Would we have been left without a White Paper? Would the White Paper have been announced in a written statement to add to the 40 or so that have been sneaked out over the past few days without any attempt to allow for scrutiny by Members? The Minister says that publishing the White Paper now gives Parliament time to scrutinise it before the Bill is brought forward but, by my reckoning, there might be eight parliamentary sitting days before the intended date for publishing the Bill, and Parliament might well want to undertake other business in that time, too. Although there is a lot of time between now and the Bill’s publication, the odd timetable that this place sets for itself means not a lot of time for parliamentary scrutiny is being allowed.
I look forward to questioning the Secretary of State on the White Paper in more detail when he attends the Select Committee later today. Paragraph 23 of the White Paper refers to discussions with existing EEA countries about the UK’s future relationship with them. Do the Government hope to establish a unique and unprecedented relationship with those countries that is different from the unique and unprecedented relationship that we are going to have with the EU? If so, why should the EEA countries agree to that?
Paragraph 30 refers to the likely use of the immigration rules, rather than primary legislation, to ensure the ongoing rights of EU nationals living in the UK. Anything that gives legislative impact to the continuation of those rights sooner rather than later is to be welcomed, but does using that method mean that Parliament will not be able to amend the Government’s proposals? If we think they do not give sufficient protections to citizens, and this is being done under immigration rules rather than through primary legislation, will Parliament have the opportunity to strengthen that protection if it sees fit?
The Secretary of State has acknowledged that primary legislation will be needed to give effect to the financial settlement, but one or two members of the European Research Group might not be too keen on that settlement. What are the Secretary of State’s contingency plans if they rebel in the way they did last week? Will the Government just cave in? If not, what concessions do they expect to have to make to the hardliners to get this essential legislation passed?
I welcome the assurance in a number of passages of the White Paper that the usual conventions regarding the devolved Administrations will apply. Can we have an assurance from the Secretary of State now that this legislation will be normal, and that we will not need to appeal that it is abnormal, so that his Government do not ride roughshod over the rights of the devolved Parliaments simply because their assessment of what our people need is a bit different from that of those Parliaments? Or is this another situation in which if the devolved Administrations disagree with the UK Government, they will take us to court, rather than seeking a political agreement?
The hon. Gentleman asked about EEA nationals. We are engaged in diplomacy with our EEA partners and separate provision will be made for them. We hope to be able to conclude that reasonably soon.
I take on board the hon. Gentleman’s points about consultation with the devolved Administrations. We have been working closely with the devolved Administrations at official and ministerial level to prepare this White Paper. Ministers discussed proposals for the Bill at the last meeting of the Joint Ministerial Committee on 5 July. Of course, we will respect the Sewel convention, although I accept the hon. Gentleman’s point that there are different views about how that will apply, and that is difficult to judge until we have the entire withdrawal agreement.
The hon. Gentleman asked about the immigration rules. The changes will be made by statutory instrument—that is the swifter, more flexible way to proceed in accordance with the White Paper—but the process will allow for the scrutiny of those rules in the normal way.
I hope that I have given the hon. Gentleman some reassurance. I look forward to engaging with him, and all the devolved Administrations and those representing them, as we go through this process.
“all EU citizens lawfully residing in the UK”
by 31 December will be able to stay. Can the Secretary of State give the House and those 3.5 million European citizens an assurance that that commitment from the Government will still hold in the event of us leaving without a deal? Yes or no?
We are very clear that, in the event of no deal, there would be no wholesale removal of rights of EU nationals in this country. We are absolutely committed to providing the reassurance and security that they need. That is the point of agreeing these aspects of the withdrawal agreement up front and publishing this White Paper—so that EU nationals here and UK expats abroad can see precisely not only the substance of their rights, but how they will properly be protected.
“live their lives broadly as they do now”.
Will he confirm that the existing rights to move freely between EU countries and to work and study in other EU countries will apply to all UK citizens currently living in France, Germany, Estonia, Poland and elsewhere?
The Secretary of State will be aware of the importance of the fishing industry to Torbay and across the south-west. Can he therefore confirm that, by 2020, the UK will be negotiating its own fishing policies as an independent coastal state?
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