Amendment 51A

Retained EU Law (Revocation and Reform) Bill - Report (2nd Day) – in the House of Lords at 4:15 pm on 17 May 2023.

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Baroness Noakes:

Moved by Baroness Noakes

51A: After Clause 19, insert the following new Clause—“Report on retained EU law(1) Within 6 months from the day that this Act is passed, and every 12 months thereafter, the Secretary of State must prepare a report setting out the following in respect of each item of EU derived subordinate legislation or retained direct EU legislation which has not been revoked by section 1—(a) whether and to what extent it remains in force, including the effect of any modifications made whether under powers in this Act or otherwise;(b) details of any plans to modify, repeal or replace it.(2) Any reports prepared under subsection (1) must be laid before each House of Parliament.(3) This section ceases to have effect after a report showing that all items of EU derived subordinate legislation or retained direct EU legislation have been modified, repealed or replaced.”

Photo of Baroness Noakes Baroness Noakes Conservative

My Lords, I am grateful to my noble friends Lord Jackson of Peterborough, Lord Frost and Lady Lawlor for adding their names to Amendment 51A.

The Government have made very significant changes to the Bill, with the new schedule revoking around 600 pieces of retained EU law, in place of the previous plan to revoke all extant EU law, broadly, at the end of this year. As I said on Monday, I welcome this pragmatic approach, but it has created a new need for visibility of progress in dealing with the total population of retained EU law, and my Amendment 51A tries to give that visibility.

Specifically, my amendment introduces a new clause which calls for the Secretary of State to prepare a report within six months of the Bill passing and every 12 months thereafter. That report should show the status of all items of retained EU law, other than those being revoked by the Bill, together with the Government’s plans for dealing with them. Subsection (2) of the new clause proposed by my amendment requires the reports to be laid before Parliament, and subsection (3) says that the reports should continue until all the items of retained EU law have been dealt with.

Last week, the Secretary of State for Business and Trade assured the other place that the revocation of the 600 bits of EU law in the new schedule was not the limit of the Government’s ambition, and I would certainly like to believe that. My fear is that once the Bill is passed, government departments will heave a sigh of relief and move on to things that are more interesting than working out what to do with their retained EU law.

Legislation cannot make the government machine complete the task, but it can provide for transparency, and I see this as having two benefits. First, the Secretary of State for Business and Trade will have a tool at her disposal to keep the pressure up on her Cabinet colleagues to do their part. Secondly, and perhaps as importantly, Parliament will have information which it can use to hold the Executive to account.

I was already concerned about how to monitor progress on dealing with retained EU financial services legislation. That legislation has been carved out of the Bill and is dealt with in the separate Financial Services and Markets Bill. In the other place last week, the Secretary of State for Business and Trade claimed that 500 pieces of retained EU law will be repealed by the Financial Services and Markets Bill by the end of this year. Unfortunately, this is not true. Schedule 1 to that Bill contains long lists of financial services laws which are identified for repeal, but repeal will be activated only when the Treasury decides to do so, and it will certainly not be by the end of this year. The Treasury has been clear that the process will take “a number of years”, and it has no plan or timetable to complete the work. I already have some amendments ready for Report on the Financial Services and Markets Bill next month.

Given the initial drafting of the Bill, I thought that the Treasury’s approach to retained EU law was going to be the exception, but it now appears to be the new normal. What happens to retained EU law and when it will be determined by the various government departments is not clear at the moment. I want to ensure that progress on dealing with retained EU law across the whole of government is kept in sharp focus.

I drafted this amendment in haste once the Government had tabled their own amendments to the Bill last week. I am fairly sure that the Minister’s lawyers will be able to tear it apart, but I hope he will see it as an opportunity to create a transparency and oversight mechanism that will complement the Government’s new approach to retained EU law. I beg to move.

Photo of Lord Jackson of Peterborough Lord Jackson of Peterborough Conservative

My Lords, it is a pleasure to follow my noble friend Lady Noakes on this issue, and I am delighted to have had the opportunity to support her by adding my name to the amendment. Noble Lords will remember that during the passage of the EU withdrawal Bill there was a great deal of discussion about whether this House sought to gain for itself executive powers—that is, to become the Government in directing government policy with respect to the withdrawal Act and exiting from the European Union, rather than performing its proper constitutional role, which we all concede is effective scrutiny and oversight.

This amendment is a helpful compromise in seeking to direct Ministers, the Government and the Civil Service to a place where we can all agree. I am sure that noble Lords who earlier this week supported Amendments 2 and 4 and spoke to Amendment 76, which I gather later today we are likely to divide on, will welcome this amendment—you need congestion charging on the road to Damascus, because the traffic is quite heavy at the moment. Those who were happy to turn a blind eye to the huge corpus of EU legislation from 1973 to 2020 are now praying in aid the importance of scrutiny and oversight. That being so, this is a good vehicle to give effect to that, particularly the need for periodic reviews of the Government’s progress on the dashboard.

As I made clear when I spoke earlier in the week, people are watching how this House and the Government ensure that the decision they made in 2016 is given proper effect. While I understand that this House cannot instruct the Government, this is a good way of achieving compromise. I expect a majority on all sides of the House to give my noble friend’s amendment their strong and emphatic support, and I fully expect, since the Minister has an opportunity so to do, an amendment to be laid at Third Reading that consolidates this amendment. If that is possible, I think there will be a strong consensus as the Bill goes forward. In the meantime, I strongly support the amendment and I hope noble Lords will give it their support.

Photo of Baroness Lawlor Baroness Lawlor Conservative

I have added my name to my noble friend Lady Noakes’s Amendment 51A, and I would like to follow on from what she has said. It is important that the legislative momentum for sunsetting, removing or revoking EU legislation be kept up. The reporting requirement on the Government will, as she said, keep up the momentum and help the Government and indeed Parliament to keep track of what has gone, what is yet to go and how further regulations, if any, will be modified.

There is a very good reason for doing this, and it relates to cost. Ultimately, it is people who bear the costs, either through what they pay for goods and services or through their taxes for government compliance costs in dealing, as now, with two systems of law: EU retained law and our own common law.

I hope the reporting requirement will enable us all to know where we are going and help us keep track of getting rid of that which the Government have pledged to get rid of or modify where necessary. That is very important in the interests of efficiency, for everyone, not just businesses. It is also important for transparency. Not only does regular reporting help the momentum; it will make for fairness so that we are all clear about the rules. I hope it will mean greater prosperity, which we need to encourage. In my view, we need to move back more thoroughly to our common-law system, and that is something on which I hope to touch when we consider the next group of amendments.

Photo of Lord Frost Lord Frost Minister of State (Cabinet Office)

My Lords, I support Amendment 51A, to which I have added my name. There is perhaps little to add to what has been said in support of the amendment, other than to recall that the corpus of retained EU law that will be covered by it remains a corpus of law—however normalised, we must hope, by the Bill—that was brought on to the UK statute book in a distinct and different way that did not always enjoy full discussion in this Parliament, as we have said many times. It is logical and reasonable to keep that corpus of law under particular review under this distinct process, so that it can be kept in view of this House and of Parliament. The original purpose of the Bill as introduced by the Government—to review, reform, perhaps revoke and perhaps continue with the legislation—can be kept fully in mind and implemented. To me, that is the logic behind the amendment, and I hope the Government will be able to take that on board.

Photo of Baroness Fox of Buckley Baroness Fox of Buckley Non-affiliated

My Lords, I support this amendment, whose intention is well thought through, whatever the lawyers say. I shall say why.

When consideration was being given to what had driven the changes that the Government themselves brought in with the removal of the sunset provision in Clause 1, some credence was given to the words of Jacob Rees-Mogg, who had originally introduced the Bill, and who stated that this was an admission of administrative failure and the inability of Whitehall to do the necessary work. I am no fan of blaming “the blob” for everything. The reason why I support this amendment is that it allows the general public, let alone Parliament, to see what work is being done when and where. That is why transparency matters: so that you cannot just blame things going on behind the scenes.

The Secretary of State for Business, Kemi Badenoch, suggested that the previous demands on the Bill, with its cliff-edge, had caused so much concern that civil servants were choosing to reduce legal risk by preserving EU laws, rather than prioritising meaningful reform. Now that the Government have changed this, we need to be aware that we are having meaningful reform and, again, to see it. Otherwise, I worry that we will have simply put off making decisions about how to deal with this situation.

My final reason is that in this House on many occasions noble Lords have, in good faith, worried that the whole removal of retained EU law was a plot to undermine workers’ rights, women’s rights and everyone’s rights. I have never been as cynical about it as that and have always believed that those rights were fought for domestically and we do not need to be concerned. But I hope that everybody in the House might support this amendment because it should reassure. It gives us now the opportunity to say what is retained, what is removed and what is reformed—rather than, as it were, gossiping behind the scenes with almost a conspiratorial atmosphere of what is really going on—and that we simply are enacting now what was voted for in 2016 and everyone can see what is happening. Reporting it in full will be very helpful.

Photo of Lord Carlile of Berriew Lord Carlile of Berriew Crossbench 4:30, 17 May 2023

My Lords, I do not have an objection in principle to this amendment. Indeed, it sets out a requirement for information which I would suspect in about six months’ time several normal legal websites will carry on a search inserting words such as “What is still in force of EU legislation?” But I am troubled by the implication that this is a substitute for the two amendments that this House passed two days ago and for Amendment 76. I think it would be misleading for any Division or determination on this amendment to be based on that premise.

Photo of Lord Shinkwin Lord Shinkwin Conservative

My Lords, I thank my noble friend Lady Noakes for tabling what seems to be an eminently sensible amendment. My noble friend mentioned visibility, and with visibility comes transparency. This would seem to be entirely consistent with His Majesty’s Government’s laudable commitment to transparency. I join with others in hoping very much that my noble friend the Minister will look kindly upon it.

Photo of Baroness Altmann Baroness Altmann Conservative

My Lords, in principle I do not have an objection to the amendment that has been tabled by my noble friend Lady Noakes, supported by my other noble friends. The problem I have is in practice rather than in principle. How should Parliament and civil servants be spending their time, and do we trust that what is happening in terms of reviewing retained EU law will be done in the interests of parliamentary sovereignty and the interests of the public? There just seems to be underlying this whole Bill an ideological aversion to any EU-derived regulations. They are automatically considered to be harmful to the public, and that cannot be the case when we are potentially talking about legislation, regulations, public protections and legal rulings which have been relied on by the public and business since 1973.

I congratulate my right honourable friend the Secretary of State and my noble friend’s department for the common-sense change of approach involved in the amendments to this Bill. If I could be assured that Amendment 51A would not divert parliamentary and Civil Service time away from the important changes that are needed in the post-Brexit environment, then in principle I understand the logic and can accept it.

Photo of Viscount Hailsham Viscount Hailsham Conservative

My Lords, may I just support what my noble friend has said? The task contemplated by Amendment 51A is immense, and I would have thought there were better uses of the Civil Service’s time.

Photo of Lord Hope of Craighead Lord Hope of Craighead Judge

My Lords, the amendment makes no reference to the devolved Administrations, and they have a considerable burden themselves to bear. I hope the Minister has been very careful to have regard to the interests of the devolved Administrations and will consider their position when he decides what to make of this amendment.

Photo of Lord Fox Lord Fox Liberal Democrat Lords Spokesperson (Business)

My Lords, first I would like to associate myself with those last two comments and those of the noble Lord, Lord Carlile. This amendment should not in any way be conflated with the amendments that we have passed and, I hope, we will pass later today. Rising to speak to this amendment rather feels like gate-crashing someone else’s private argument. I beg your pardon, but I am going to continue.

In normal circumstances, if there was anyone I would send out to reduce bureaucracy, it would be the noble Baroness, Lady Noakes. Sadly, she seems to have broken from her norm with this amendment—perhaps she has been egged on or even corrupted by the co-signatories of this amendment. However, it does seem like it is one fight too many for the Government, and I understand that to some extent the Minister will be conceding on this. No doubt in the Government’s estimation this is perhaps a bone that can be thrown to one part of their own party without actually causing too many problems for the rest of the Bill—so good luck to the Minister on that one.

To what end will we have this list? I am a little curious as to what we will be listing. The noble Baroness, Lady Lawlor, raised this to some extent. I think it would be helpful for your Lordships if the Minister could confirm at what point in the process of this Bill retained EU law that is not revoked by the schedule becomes assimilated law. In other words, when will this happen? When in the process of this Bill do Clauses 4, 5 and 6 cause these laws to slough off the links they have with the ECJ and all those interpretations based on EU values, which noble Lords opposite object to? At what point are these laws rendered just as susceptible to British common law as any other law on the statute? It would be helpful to know the dates when those things will happen because, once that has happened, it seems there will no longer be any retained EU law: it will be assimilated law formerly known as retained EU law.

An intriguing vision visited me when I was pondering this. In the popular motion picture “Blade Runner”, the hero, Harrison Ford, is tasked with rooting out and eliminating replicants. As I am sure the noble Baroness, Lady Noakes, will remember from when she queued to enter the cinema, the replicants are essentially synthetic humans, indistinguishable from and which function as real humans—hence, they are rather hard to find. In a sense, the noble Baroness, Lady Noakes, is seeking to brand these laws in order that they do not become indistinguishable replicants once they enter the canon of British law. Of course, that is her point; she has to maintain a difference between these laws in order to continue to have a conflict. This is, of course, a conflict between and among her parliamentary colleagues rather than the rest of us.

If, instead of focusing on where these laws came from, they focused on what they do, the whole process would be more worth while. Some of this assimilated law will need revoking or reforming, but similarly so do swathes of laws that were directly made by this Parliament. The invaluable time spent on the process in the amendment tabled by the noble Baroness, Lady Noakes—her annual census of the replicants perhaps—would be better spent actually doing the sort of things we need to do to make regulations smarter, as was noted by noble Lords just now.

The noble Baroness, Lady Noakes, mentioned the Financial Services and Markets Bill. She may be dissatisfied with what is going on there, but that seems to be a model of how this process should go. If you take a sector, the job of Parliament is to assess all of the relevant laws pertinent to that particular sector. Some of them will need retaining; some of them will need revoking; some will need reforming, and there will be a need for new laws. At the end of it, Parliament will have gone through the whole process—irrespective of where those laws came from. It is not about where they came from; it is about what they do. This is unnecessary and it is essentially an irrelevant piece of legislation designed to create an argument within the party opposite.

It is the sort of clause that the noble Baroness, Lady Noakes, would normally come down on like a ton of bricks. It is a list that the noble Baroness, Lady Noakes, and her colleagues on this amendment can use to fuel a fight with other members of the Conservative Party and nothing more—so good luck with that.

Photo of Baroness Chapman of Darlington Baroness Chapman of Darlington Shadow Minister for the Cabinet Office, Shadow Spokesperson (Business and Trade), Shadow Spokesperson (Treasury)

My Lords, I was surprised when I saw this amendment. I have now spent 13 years in opposition in this and the other place, tabling such amendments at just about every opportunity. When you know that the Government are not going to do what you want them to do, one of the things left to you is to ask the Government to report annually or six-monthly to both Houses on whatever the issue might be. I have done this on everything from women’s justice to food standards to access to medicines. It is an in your back pocket kind of amendment—the sort that Ministers usually bat away quite easily. They talk about the cost and how much Civil Service time would be taken up in preparation. They do not want to use up valuable parliamentary time to debate these things, nor to distract Ministers with these sorts of fripperies.

On this occasion, it seems that the Government have decided that they can afford the time, money and resources to compile this list—to keep the argument alive for some people within the Conservative Party. What has happened to the noble Lords, Lord Frost and Lord Jackson? The tigers of Brexit are being bought off by an annual report to both Houses of Parliament. This is the sort of thing that the Opposition would have settled for at any point. There they are, taking this at what is meant to be the climax of their Brexit mission. I am quite disappointed that this is all the noble Lords have sought to achieve at the end of all this. They must be quite disappointed, although at least they get to have their report each year, to raise things and to ask why this or that regulation has not yet been dealt with. This is not going to be a red-letter day in my diary but, if it keeps the flame burning for others, then so be it.

I have to ask the Minister the same questions that he would ask me if the roles were reversed. Who will be compiling this list of regulations? How much time will they be spending on it? What is the cost? Will there be an opportunity to debate this report in Parliament each year? What format will this take, or will it go to a Select Committee? I wonder about the Government’s priorities. They find time to undertake this task when mortgages are soaring, inflation is still high, people are dying waiting for treatment, unable to see their GP and are pulling their own teeth out. This is what is going on in the country and yet the Government make this a priority.

I understand that the Government intend to accept this amendment, despite everything they have managed to do. They have completely rewritten their Bill. They have shown a little bit of backbone in doing that. I give credit where it is due. Now, at the 11th hour, they think that this is going to get them over the final hurdle. I am disappointed in the Minister for falling at the final fence. I am particularly disappointed in the noble Lords, Lord Frost and Lord Jackson, for settling quite so easily. There we are. I do not think we will bother to oppose the Government on this. Given everything else that has been going on, it does not seem worth the time of the Chamber to do so. This was quite a surprising, last-minute event in the process of this Bill.

Photo of Lord Callanan Lord Callanan Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

My Lords, I thank the noble Baroness, Lady Chapman, for what must be the most cynical speech I have heard on this Bill so far. We have seen just how committed the Opposition are to any kind of serious reform. They were perfectly to accept all this legislation which was imposed by the European Union through the various processes—before the noble Baroness, Lady Ludford, corrects me. Now Labour is not interested in any kind of reform of it. It is perfectly happy to live with it. It shows the true colours of the Opposition.

Nevertheless, I am of course pleased to say that the Government have already reformed or revoked more than 1,000 pieces of retained EU law. But I agree with the contributions of my noble friends Lady Noakes, Lord Jackson, Lady Lawlor, Lord Frost and Lord Shinkwin—but this should not be the limit of our ambition. The answer to the noble Baroness, Lady Chapman, is that the retained EU law is already listed in the famous schedule, and, if she accesses this internet thingy, she can get a list of all the remaining retained EU law. Departments will continue to review all the retained EU law that has not already been revoked, reformed or planned for revocation this year, to identify further opportunities for reform. We want to do this because we want to reduce the burdens on business, generate more jobs and unlock the potential for economic growth. Again, we can see where the Opposition’s true priorities are in that agenda.

As a down payment on our commitment to deliver meaningful reform, our 10 May policy paper, Smarter Regulation to Grow the Economy, set out our intention to reform regulations and remove some of the burdens on businesses. We announced changes that will reduce disproportionate EU-derived reporting requirements, and these could potentially save businesses up to £1 billion a year. That will be just the first in a series of announcements that the Government will make in the coming months on reforming regulation to drive growth—not just EU regulation but any that stands in the way of driving further economic growth.

In addition to the schedule, the Bill will still strip retained EU law of its EU-derived interpretive effects, thereby assimilating it into domestic law by the end of 2023—that is the answer to the question asked by the noble Lord, Lord Fox. Furthermore, the powers in the Bill will still enable us to revoke, replace and reform any outdated EU laws that remain on our statute book by 2026. This new approach will provide the space for longer-term and more ambitious reforms, and the Government intend to do just that. Of course, this will also mean that fewer statutory instruments will be required to preserve EU laws that are deemed appropriate or necessary. On this small point, I agree with some of the points that were made: some of the regulations are appropriate and necessary to maintain—no one has ever argued against that.

Moreover, the Brexit opportunities unit is still operational, spearheaded by the Secretary of State for Business and Trade. It has been pivotal in driving the development and delivery of the retained EU law Bill and the wider associated retained EU law reform programme. These efforts are being supported by specialist legal expertise from outside government, and Parliament will be able easily to monitor government progress on REUL reform, as we update the dashboard every quarter. If the noble Baroness, Lady Chapman, is interested, I can send her the link so she can access it—but I suspect that she is not really that interested in any reform programme.

The unit drove the aforementioned 10 May regulatory reform announcement, setting out a long-term plan to reform UK regulation over the coming months. Furthermore, we have committed to future announcements on how we will reform regulations to reduce the cost of living, deliver choice to consumers, establish trail-blazing regulation to catalyse innovation and make the UK a science superpower, while removing obstacles to building the new world-class infrastructure that we need.

However, I understand the sentiment of the amendment, and it is important that Parliament and the public are able to hold the Government’s feet to the fire and ensure that our momentum continues on retained EU law reform. Therefore, I fully support the spirit of my noble friend’s amendment, but the Government would appreciate some additional time to consider some of its finer details and, in particular, to consult with parliamentary counsel on what precisely is the most appropriate drafting. Therefore, I hope that my noble friend Lady Noakes will agree to withdraw her amendment, but I am happy to give her an undertaking that the Government will give further consideration to the matter ahead of Third Reading, with a view to working with my noble friend to fashion a similarly spirited amendment.

Photo of Baroness Noakes Baroness Noakes Conservative 4:45, 17 May 2023

My Lords, I thank all noble Lords who have spoken in this debate, particularly my noble friends who have supported the amendment. I was surprised at the tone of the comments from the Peers on the Benches opposite, both of whom resorted to ad hominem attacks. The noble Lord, Lord Fox, focused on me, and the noble Baroness on the Labour Benches focused on what she called the “tigers” on my Bench—I am sure that they will wear that badge very proudly.

My noble friend the Minister understands why this is an important thing to put on the statute book, particularly to show our commitment to driving forward reform to support growth and competition in our economy and to get rid of the regulatory burdens holding our economy back. I was pleased to hear that my noble friend accepted the principle of my amendment, and it does not surprise me that he could not accept its wording. I thank him for that acceptance; I look forward to working with him and hope that we may reach some conclusion to this before the Bill is returned to the other place. For now, I beg leave to withdraw my amendment.

Amendment 51A withdrawn.

Clause 20: Consequential provision