Private International Law (Implementation of Agreements) Bill [Lords] — House of Commons, 2020-09-02
Topic: International Affairs
Robert James MacGillivray Neill (Conservative, Centre-right): I welcome the approach to the Bill that the Lord Chancellor has adopted and I support the Bill. I support it without hesitation, because it is necessary, but also with a measure of sadness, because I wish it were not necessary. It is a consequence of a decision that was taken that some of us continue to regret and is perhaps an example of the price that is paid in respect of an issue that some thought was technical and dry but that in fact affected people’s everyday lives and the prosperity of the business community of this country but was perhaps not given enough attention in the course of the debates that preceded our decision to leave the EU. Perhaps that caused us not to value enough the system of connections and regulation that we were party to The reality is that we are doing our level best—the Lord Chancellor and the Under-Secretary of State for Justice, my hon. Friend the hon. Member for Cheltenham (Alex Chalk) are doing precisely that—to put in place the best possible scheme that we can have and that is available to us when, at the end of the year, we leave the most comprehensive set of private international law agreements that exist. We just have to accept that that is the reality, but let us not kid ourselves that we will get any improvement: we will end up with something that is less good than we had and that we are leaving behind—ironically, when the Brussels IIa recast, particularly in its relation to the strengthening of the provisions in relation to jurisdiction-of-choice clauses, is something that Britain has succeeded in having changed and improved specifically to advance and protect the interests of the British-jurisdiction and English-law clauses that greatly advantage the City of London and our broader national financial services sector. I put that on the record as a matter of context and to get it off my chest, but it needs to be said, because it ought to influence the way and the speed with which we now move on this I welcome the fact that the Government have picked up, on this and the preceding measures, a number of the Justice Committee’s recommendations on how we might best deal with the situation that we find ourselves in. For example, bringing the Rome regulations on family and other matters, which did not require reciprocity, into domestic law, and implementing the Hague convention, as set out on the face of the Bill, are desirable. The ambition to join Lugano is, for reasons that we have already debated, very important. The Hague conventions are worthwhile but are not as good as what we had before, so moving to Lugano, which would be an improvement, would be a step forward I hope, too, that we swiftly deal with the other two conventions referred to in the helpful letter that the Under-Secretary of State for Justice, my hon. Friend the Member for Cheltenham, sent to all Members of Parliament: the 2019 Singapore convention and the future Hague convention agreements. There has been some debate in the other place, particularly from Lord Mance, about which order they shall come in. On balance, I am persuaded by the evidence that we have heard over the years and the arguments made by the Law Society of England and Wales—I think the Law Society of Scotland finds itself in the same place—that the more important thing is not to have any gap in the recognition and enforcement of judgments and recognition of international public clauses. That is why the Law Society favours pressing ahead with entry to Lugano as soon as we can, rather than waiting for what may develop with the Hague arrangements. The Government are right not to delay in that regard; we must press ahead That is, of course, the means by which we should deal with the Italian torpedo. I mention it not because this is like when we were doing trials in long, boring fraud cases, and there was sometimes a bit of a side bet to make an unlikely comment in one’s closing speech to the jury. The truth is, as we all know, that the Italian torpedo—the delaying tactic of seeking to thwart an exclusive jurisdiction clause, very often operating in favour of the UK, by commencing unmeritorious and almost abusive proceedings in another jurisdiction, which would then hold up the process—has caused a problem in commercial matters and real hardship in many family law cases. Getting the family law issues right is particularly important. The Government’s objective of ensuring that, for example, the partner of a finished relationship is able to enforce her maintenance payments from the other partner, who may be in one of the EU or other contracting states, is critical for ordinary individuals—not just businesses. Having in place a means of protecting the English and Scots law jurisdiction clauses, which are very important for financial services contracts, is critical too It is perhaps not the time to go into this in detail, but when we get to Committee, may I ask Ministers to reflect on the matter of asymmetrical jurisdiction, which was raised by Lord Mance, who has massive experience in this field? I tend to agree with him on that, whereas I am not persuaded about the sequencing of Lugano and Hague. He referred to it in some detail in his speech in the Lords. I will not repeat what he said, as he is much more experienced than me, the Lord Chancellor and the Under-Secretary of State, who did not have the fortune—literally or otherwise—to practise in that field. Lord Mance’s wise words are important, because this issue relates to derivative swaps and other financial instruments, which, for reasons that he set out well, are of particular importance to the UK financial services sector. As things stand at the moment, the provisions in the Bill do not sufficiently address that. That is a technical but important matter for our business interests that we ought perhaps to reflect on as the Bill makes progress in Committee The other thing I want to say at this stage is that while I know the Lord Chancellor wishes to be ambitious in scope, I am not saying that this is necessarily a Henry VIII power or that all wide-ranging powers to amend by delegation are always wrong. Lord Garnier, who has been referred to as a mutual friend of all those on this side of the House and elsewhere, put it rather well when he said—I paraphrase him—that essentially all parties when in opposition oppose clauses of this type, but all parties when in government make use of them. He said that he had done so himself, and I did so myself when I was a Minister. Those on the Treasury Bench have done so at various times, so it is not a question of haloes in that regard—