European Union (Withdrawal Agreement) Bill

I must draw the House’s attention to the fact that financial privilege is engaged in Lords amendment 1.

Clause 7

Rights related to residence: application deadline and temporary protection

I beg to move, That this House disagrees with Lords amendment 1.

With this we may take Lords amendments 2 to 5, and Government motions to disagree.

Less than a fortnight has passed since we last debated the Bill in this House. Since then the House of Lords has sat for nearly 40 hours to debate more than 100 amendments. The noble Lords in the other place have asked this House to think again on five matters and I will address each in turn.

Turning first to Lords amendment 1 on citizens’ rights tabled by the noble Lord Oates, I know that noble Lords share the Government’s commitment to putting the rights and welfare of citizens at the heart of our withdrawal negotiations. The first part of the amendment establishes a declaratory system and the second part requires Ministers to bring forward regulations making provisions for those with declaratory rights to apply for a document evidencing their rights. This amendment would mean the successful EU settlement scheme in its current form would need to be abandoned, because there would be no need to register if people could later rely on a declaration that they were already in the UK. This would make null and void the 2.8 million applications and the 2.5 million grants of status that have already been completed. The Government would, under this amendment, also be unable to issue digital status to EU citizens without also issuing physical documents, including to those already holding a digital status under the current scheme. That would increase the risk of fraud and raises costs to Government and citizens.

Surely the Secretary of State is aware that his own Ministers have also been stating that it might be possible for people to print off emails, for example, to provide that confirmation. There seems to be a huge number of mixed messages here. He will also be aware that many of those citizens are already being asked for that proof by employers. Surely the Government should deal with the system as it is actually being used, rather than his imagined reality of it, which is rather different.

The hon. Lady anticipates my next point, which is on the interplay between a physical document and the digital status, because, as she knows, digital status is more secure than any physical document could ever be, and furthermore all successful applicants receive a confirmation letter and can download secure share codes which can be printed or sent to anybody an EU citizen might need to show their status to in the future. The key is the number that is there, and digital status is the most secure, but of course people can print off the email that they receive.

The vote to leave included a desire for greater control of our borders. We need to be able to differentiate between EU citizens who arrived pre-exit and have rights set out in this Bill and EU citizens who arrive after we leave, who will be treated the same as the rest of the world under the forthcoming immigration Bill. Despite the good intentions, a declaratory status does not allow for that differentiation, so I urge Members to reject this amendment.

The Secretary of State will understand that there are, of course, some people for whom the challenge of applying for status is considerable, and the Government have said they will give reasonable consideration to those who have reason not to have applied by the deadline. One group that I and other colleagues are particularly concerned about is children looked after in the care system by local authorities, which do not in many cases have either the resources or the expertise to pursue applications for those children to obtain settled status. Will the Secretary of State assure the House that they will be protected, as they would be under a declaratory system?

The hon. Lady makes a fair point, and I know that she has taken a close interest in the issue over many years. As she will be aware, we have committed £9 million to work with vulnerable groups and to help sectors, including the one to which she refers, with using the settlement scheme, and we have introduced a grace period to allow additional time if there are reasons why people need to apply late.

The fact is that the scheme has no charge and almost 3 million people have applied. It is working well, but we have an outreach programme, which includes 57 organisations and money to address the hon. Lady’s point.

The Government have previously disputed estimates from respected think-tanks that tens—probably hundreds—of thousands of European economic area nationals will fail to apply by the deadline and therefore lose their rights. Do the Government have their own estimate of the numbers? If they do not, how on earth can the Secretary of State dispute those figures?

That is in part why the Government have put a grace period in place; that reflects many previous debates in this House that included concerns raised by the hon. Gentleman and others about whether people might miss the deadline. Almost 3 million people have applied, which is a reflection of the fact that the scheme is working very effectively.

I shall make a little progress before taking further interventions.

I turn to their lordships’ amendments 2 and 3, on the interpretation of retained European Union law. Amendment 2, tabled by Lord Beith, would remove the power to set which courts may diverge from retained Court of Justice of the European Union case law, and how. Amendment 3, tabled by Lord Mackay, would insert a mechanism whereby any court thinking that CJEU case law should be departed from may ask the Supreme Court to decide.

The other place has one of the greatest concentrations of legal talent in the world, and it is only right that the Government’s intentions on such a sensitive matter should be examined by their lordships, and that challenging alternatives should be proposed. The Bill ensures that time is built in to allow consultation of the senior judiciary in all jurisdictions. It is worth repeating what my noble Friends Lords Callanan and Keen said: we will, of course, also consult the devolved Administrations.

In proposing amendment 3, the noble and learned Lord Mackay has made an interesting proposal, but the Government cannot accept this recreation of the CJEU’s preliminary reference procedure.

As a fellow lawyer, my right hon. Friend will know the importance of the doctrine of binding precedence—stare decisis—to our common law system. That was what the amendments sought to deal with.

Anyone looking at the Lords Hansard will see that we were clearly close to a compromise with Lord Mackay, in which the necessary scheme to disapply EU law would be dealt with not necessarily by the Supreme Court but by courts of appellate jurisdiction. If we do not accept this amendment as it currently stands, will the Government try again to find a compromise when the matter goes back to the Lords? This is a fundamental principle on which we ought to be able to find agreement.

My hon. Friend speaks with authority and constructively about how the issue could be addressed. Let me reassure him that the Government do intend to consider and consult rigorously to ensure that CJEU case law is properly domesticated after the end of the implementation period.

Let me set out to the House, especially hon. and learned Members, that the power in clause 26 is sunset until the end of the year—the point at which courts will start interpreting retained EU law. Any change to the rules of interpretation will come in time for litigants and the courts. We will ensure that there is legal clarity at all times on the rules of interpretation.

I rise to support the proposal of my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), to go back to the Lords for a compromise on the matter. Of all the changes incorporated in the withdrawal Act in the past month or two, this is the weakest; it opens a swathe of problems for both Government and judiciary. Lord Mackay got very close to getting it right, and we should talk to him again.

I always listen intently to the constructive points put by my right hon. Friend, my predecessor but one. I draw his attention to the fact that we are committed to consulting the senior judiciary on our approach to this matter, which is my right hon. Friend’s underlying point.

The Secretary of State says that he is going to consult the devolved Administrations. However, the problem is that at present the Government speak to them without taking any cognisance of their answers. Will he give me an assurance that when he consults with the devolved Administrations on this matter, he will not only listen but actually take their advice on board?