Exiting the European Union (Financial Services) — House of Commons, 2019-02-18
Topic: International Affairs
Kirsty Ann Blackman (Scottish National Party, Centre-left): I am impressed by the hon. Member for Thirsk and Malton (Kevin Hollinrake) making a valiant attempt clearly not to stretch the time out, but to make an excellent speech. It was unfortunate that he did not listen a little more carefully to the speech by the Labour spokesperson, who raised the issue of powers that were being changed beyond the scope of simply rewriting the EU law into UK law. Powers are being changed in that regard In relation to the disclosure of information SI and to be fair to the people who wrote the explanatory memorandum, there are two whole pages on the deep and special partnerships that the UK desires to have with the EU, although not on the substance of the information in the SI. I commend them for including all that information, although it could have been written in any SI, to be honest The instrument redesigns the requirements on EU member states in various pieces of EU legislation that are to be read as applying to the UK after exit, according to a line in the explanatory memorandum, which did not make a huge amount of sense to me. The explanatory memorandum seems to suggest that this UK SI is amending EU legislation that applies to EU countries, which it clearly cannot do, because the UK Parliament does not have the power to amend EU legislation as it applies to other EU countries The SI contains some interesting stuff about the requirement to seek the consent of EU organisations and countries before disclosing information. There is currently a requirement for the UK to seek the consent of EU countries before passing on the financial data that it may need to pass on. The SI would remove that requirement. How does that accord with the UK being keen to have a deep and special partnership if it is removing the requirement to seek consent? Removing a requirement to seek consent seems like a bit of an odd thing to do, given that the requirement to seek consent presumably ensures that there are more safeguards in place. We seem to be reducing the number of safeguards in relation to EU countries but not in relation to third countries, because currently we do not need to seek that consent. It is a bizarre thing to do My other question is whether the EU has announced plans to change its legislation so that it does not need to seek consent from the UK to pass on financial information. I have raised this issue before and the Minister will know what I am about to say. In some cases, the UK seems to be agreeing on reciprocity—my understanding is that it is on a case-by-case basis by whoever happens to be heading the Department’s SIs and there is no overall policy from the Government on whether they will agree EU reciprocity on such matters, but will the EU change its law? Has it signalled its intention to change its law and is that why we are seeking to change our law The explanatory memorandum states: "The UK and the EU have agreed the terms of an implementation period" I am little confused about the definition of "UK" in this regard. The House certainly has not agreed to the terms of an implementation period. The Prime Minister’s deal lost by 230 votes, so we cannot say that it has been agreed. It may have been negotiated, but I would not go so far as to say that it has been agreed. The Prime Minister certainly seems keen to reopen negotiations on the withdrawal agreement, so surely it cannot possibly have been agreed at this point The explanatory memorandum states: "The powers in the EUWA"— the European Union (Withdrawal) Act 2018— "are not intended to be used to make policy changes", yet the powers in both SIs are being used to do just that, by changing how the law operates, and not just replacing EU regulators with UK regulators. They contain more wide-ranging changes The explanatory memorandum states that it would be "inappropriate" to continue sharing information. I am not sure how that would be inappropriate. If we are switching from "shall share information" to "may share information", surely there will be cases in which it would be appropriate to continue sharing information I have a question about the co-operation agreements that will potentially be signed for the disclosure of financial information. I am interested to know how much work will be involved in negotiating those co-operation agreements. Clearly we do not have to do any such negotiating with the EU currently because we are part of the single market and of that framework. Brexit will be overwhelmingly bad, whatever happens. Even if we have a deal, we will end up at a huge disadvantage, compared with our current position. On this specific point, how much additional work will be generated as a result of having to negotiate and sign those co-operation agreements, and at how much of a disadvantage will we be put as a result I am still dealing with the first SI, on the disclosure of information. The regulations were published in draft on 9 January this year, but the corrections were made less than a week ago, on 12 February. The copy that I got from the Vote Office did not include the corrections, so I had to find them online. I am interested to know why corrections were needed.