My Lords, I join others in congratulating the noble Baroness, Lady Donaghy, and her committee on the quality of this report. It is about a crucial sector of the British economy that has been sorely neglected in the EU negotiations. I find it extraordinary, and I hope that the noble Lord, Lord Callanan, will try to explain why it is so, that so much attention was paid to the British fishing industry, where the gain in catch as a result of Brexit is something like £25 million a year, when the needs of the business services sector, worth £224 billion to our economy, were so neglected in negotiations. Did the Government simply get their priorities wrong?
When we are looking to the future, as I think the noble and learned Lord, Lord Thomas, is right to suggest we have to, on some issues we may be able to
make progress. We might be able to make progress on short-term mobility, which is particularly important for the creative sector, our musicians and all the rest; but we will have to recognise that such progress will require reciprocal action on our part. If we take an ideological approach, as I believe the Government do, to ending freedom of movement, they will find an agreement on this difficult to negotiate. If we set aside the ideology, we might get somewhere on mobility.
On mutual recognition of qualifications, it is going to be a very hard grind. As the noble and learned Lord, Lord Thomas, says, we have to demonstrate that we have something to offer. We have a trade surplus with the EU on services. It has always been difficult within the EU to get progress on services liberalisation and, to the extent that there has been progress, it is because we were in a single market where the Commission drove member states to open up with the backing of the ECJ. We have lost that by not being in the single market, and it is a very big loss for us indeed. In future years, if the gains of Brexit are as minimal as they appear at the moment, we will have to reconsider this question of single-market membership.