UK Parliament / Open data

Trade Bill

Proceeding contribution from Baroness Fairhead (Conservative) in the House of Lords on Wednesday, 6 March 2019. It occurred during Debate on bills on Trade Bill.

My Lords, I will come to that point later, which relates to the question that the noble Lord, Lord Hannay of Chiswick, raised on whether these matters should be on the face of the Bill.

The essential point is this: this is the first time in 40 years that we have been negotiating a free trade agreement. We are keen to make sure that we do not lock ourselves into a process by having detailed elements on the face of the Bill which would then be difficult to change. What we want to do is to ensure that, through this Command Paper, the process of an enhanced scrutiny is clear, that there is an ability for Parliament to scrutinise at every stage and, furthermore, that there is a committee which will meet in confidence, which I think was something that was raised in this House as critically important. The noble Lord, Lord Hannay of Chiswick, raised this with reference to the ISC, pointing to the fact that sometimes confidential discussions need to be held in a room with a committee of experts. That is what we are proposing. We would also expect these outline approaches and objectives to be the subject of close dialogue with the relevant committee.

7.30 pm

Once an agreement had been negotiated, the amendment would seek to disapply CRaG to FTAs, replacing it with approval by an amendable resolution of each House. The Government continue to believe that CRaG is the right process for Parliament to scrutinise FTAs. It provides Parliament with the opportunity to consider a treaty in detail and, where it has concerns, delay ratification and require the Government to put forward further arguments as to why the agreement should be ratified.

Alongside the CRAG process, we have said that we will ensure there was sufficient time for the committee to produce a detailed report—with input from experts, as appropriate—prior to beginning ratification procedures under CRaG. This would ensure that Parliament would have detailed independent information, in the form of that report, to inform and support that process. We have said that, if the committee felt that the agreement should be debated prior to ratification procedures commencing, the Government would seek to meet such requests subject to the constraints of parliamentary time.

I remind the House that we have also committed to giving regular updates to the committee, including ensuring, as I stated, that it has access to sensitive information that was not suitable for wider publication and that it can receive private briefings from negotiating teams. This would not only ensure the committee was well prepared to produce a detailed report on the agreement but would also give it the opportunity to provide feedback to the negotiating teams throughout negotiations.

Taking these measures as a whole, we have sought to maintain the balance between the Government’s role in negotiating FTAs and the important principle that Parliament should have the opportunity to scrutinise, in an enhanced way, those treaties effectively. In 2010, CRaG confirmed these respective roles after a process of consultation. I do not believe that it would be appropriate for this House to seek to undo these long-held constitutional principles, nor to remove the flexibility of either House to undertake scrutiny in the way it best sees fit.

These amendments would also impose a number of further requirements on both the Government and the scrutiny committee. They would require the Government to consult the devolved Administrations on the negotiating mandate and the final agreement. There is no question that the devolved Administrations must have a real and meaningful role in the development of our trade policy, and that is why, after discussions with the devolved Administrations, we will be putting in place a new ministerial forum for international trade. This will ensure that there is meaningful engagement with the devolved Administrations at all stages of a negotiation, including prior to developing the mandate and finalising the agreement.

We are also currently in discussions with the devolved Administrations on their role in future agreements, with a view to agreeing a new concordat on international trade. This would complement the existing memorandum of understanding on devolution that was agreed by the UK Government and the devolved Governments in 2012. The MoU, with its associated concordats, is the established and respected means of setting out the underlying principles that govern relations between the UK Government and the devolved Administrations. It is entirely appropriate that we use this mechanism to ensure there is strong and ongoing engagement with the devolved Governments.

The noble Lord, Lord Purvis, raised criticism of the level of involvement of the devolved Administrations, specifically regarding the Faroe Islands. I would like to give the noble Lord two assurances on this point. First, we acknowledge that we did not get this entirely right. We have reflected on the process for agreeing continuity agreements, and I can now confirm that it is our intention to share treaty texts with the DAs prior to their being signed. Secondly, our approach to the technical rollover of continuity agreements does not set a precedent for future trade agreements. These are fundamentally different things, and it is our clear intention to ensure that the DAs are engaged throughout the process of negotiations and are able to provide input at all stages, including prior to an agreement being signed.

The amendments would also require the committee to produce a sustainability impact assessment during the mandate-setting stage and a report on the final agreement, and to set the terms of the committee’s report and analysis in some detail. We agree that Parliament should have detailed analysis available to it when considering our negotiating objectives and the final agreement. That is why last week we published further details on the economic analysis that we will produce to accompany our outline approach and objectives. This analysis will cover many of the areas that this House has sought assurances on: for example, the impact on the environment, on individuals with protected characteristics and on countries not party to the agreement, including developing countries. That analysis will be subject to parliamentary scrutiny, usually in the form of a debate in both Houses.

That does not preclude a committee from undertaking its own impact assessments, but it would not be appropriate to dictate how that committee should undertake its work. Nor would it be appropriate to dictate how and when the committee should report on a proposed trade agreement, or what that report should contain. In bringing forward our proposals last week, we were clear that Parliament itself must shape the final scrutiny arrangements, including which committee or committees would be most appropriate to take on this scrutiny role. Once that committee is in place, it must have the flexibility and freedom to undertake its important scrutiny work in the way it sees fit, and to shape the processes by which Parliament plays a role in FTAs, including being able to respond to its experiences of scrutinising the first FTAs the UK will pursue after Brexit.

It would be highly unusual for a committee’s obligations to be set out in statute in the way this amendment would bring about. The Intelligence and Security Committee is a statutory committee but is unique by virtue of the material it handles. It would not be appropriate or, we feel, respectful of parliamentarians’ immense expertise and experience in the field of scrutiny to dictate the terms by which a committee will conduct its scrutiny.

I therefore hope the noble Lord will see that, although we share much common ground here, we cannot support these amendments. The proposals we brought forward last week strike the right balance between ensuring a strong and effective scrutiny role for Parliament and respecting our existing constitutional framework with regards to the making of international treaties. They set out clear commitments on the part of the Government to ensure effective scrutiny, while leaving sufficient flexibility for Parliament itself to shape the final arrangements. I hope that, in light of this, the noble Lord will feel able to withdraw his amendment.

About this proceeding contribution

Reference

796 cc674-6 

Session

2017-19

Chamber / Committee

House of Lords chamber

Legislation

Trade Bill 2017-19
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