Source: http://www.legislation.gov.uk/anaw/2018/3/notes
Timestamp: 2018-06-24 09:19:57
Document Index: 402396558

Matched Legal Cases: ['art 5', 'art 2', 'art 3', 'CJEU ', 'CJEU ', 'CJEU ', 'art 2', 'art 2', 'UKSC ']

1.These Explanatory Notes are for the Law Derived from the European Union (Wales) Act 2018 (“the Act”) which was passed by the National Assembly for Wales on 21 March 2018 and received Royal Assent on 6 June 2018.
2.They have been prepared by the Office of the First Minister and Cabinet Office of the Welsh Government to assist the reader of the Act. The Explanatory Notes should be read in conjunction with the Act but are not part of it.
3.On 17 December 2015 the European Union Referendum Act 2015 received Royal Assent. The Act made provision for the holding of a referendum in the UK and Gibraltar on whether the UK should remain a member of the European Union (“the EU”). The referendum was held on 23 June 2016 and resulted in a 52% vote to leave the EU.
4.The European Union (Notification of Withdrawal) Act 2017 received Royal Assent on 16 March 2017. Section 1 of that Act gave the Prime Minister of the UK the power to notify the European Council of the UK’s intention to withdraw from the EU under Article 50(2) of the Treaty on European Union (“the TEU”). This notification was given on 29 March 2017. At the same time, the UK notified its withdrawal from the European Atomic Energy Community (‘Euratom’), in accordance with the same Article 50(2) as applied by Article 106a of the Treaty Establishing the European Atomic Energy Community (“the Euratom Treaty”).
5.On 23 January 2017 the Welsh Government and Plaid Cymru jointly published a White Paper entitled Securing Wales' Future. The paper sets out the main issues identified by the Welsh Government and Plaid Cymru as vital for Wales as the UK moves to leave the EU. It includes the broad aims of the Welsh Government for the negotiations between the UK Government and the EU with emphasis on preserving and promoting prosperity while recognising the majority wish to leave the EU. The paper also contained ideas about the future constitutional and governance structures of the UK following withdrawal.
6.On 15 June 2017 the Welsh Government published a further policy paper entitled Brexit and Devolution which developed the ideas on constitutional and governance structures in Securing Wales’ Future.
7.On 13 July 2017, the European Union (Withdrawal) Bill (“the EU Withdrawal Bill”)(1) was introduced in the House of Commons. It contains provision for the repeal of the European Communities Act 1972 (“the ECA 1972”) and other provision in connection with the withdrawal of the UK from the EU. The ECA 1972 was enacted in anticipation of the UK joining the European Economic Community on 1 January 1973 (the European Economic Community has since evolved to become the EU). A condition of membership of the EU is for EU law to be given effect in domestic law. The treaties ratified by the UK Government to achieve membership of the European Economic Community did not alter the law of the UK. It was necessary for each treaty to be incorporated into domestic law by legislation. The ECA 1972 provided that law arising from the various treaties of what were then the European Communities became part of domestic law and it continues to provide that EU law is part of domestic law.
8.The incorporation of EU law into domestic law is achieved by the ECA 1972 in two ways:
Section 2(1) of the ECA 1972 provides that rights, powers, liabilities, obligations, restrictions, remedies and procedures provided in some types of EU law are directly applicable in the UK legal system. This means that they are directly applicable without the need for further domestic legislation. For example, a provision of an EU Treaty, such as the Treaty on the Functioning of the European Union (“the TFEU”), which creates a directly applicable right, is enforceable in the UK courts without further action domestically.
Section 2(2) of the ECA 1972 authorises the implementation of EU obligations of the UK by subordinate legislation. For example, obligations in an EU Directive may be implemented by way of subordinate legislation. This does not prevent an EU obligation being implemented domestically by primary legislation (for example Part 5 of the Environment (Wales) Act 2016) or using powers contained in other primary legislation (for example section 2 of the Pollution Prevention and Control Act 1999).
9.The repeal of the ECA 1972 will mean that these provisions will cease to have effect.
10.In Miller(2), the Supreme Court stated that although the ECA 1972 gives effect to EU law it is not itself the originating source of that law. The Act was described in arguments on behalf of the Secretary of State as a ‘conduit pipe’ by which EU law is introduced into the law of the UK. The Supreme Court agreed with this analogy. Removing the ‘conduit pipe’ would therefore stop the flow of EU law into domestic law. Any EU law which applies in domestic law by virtue of section 2(1) of the ECA 1972 would therefore cease to have effect unless provision is made to preserve the effect of that law.
11.On repeal of section 2(2) of the ECA 1972, all subordinate legislation made under that power will lapse automatically unless provision is made to preserve it. The EU Withdrawal Bill makes provision in clause 2 for such legislation to be saved on repeal of the 1972 Act.
12.On 12 September 2017, the Welsh Government laid a Legislative Consent Memorandum (“the LCM”) before the Assembly in respect of the EU Withdrawal Bill as introduced on 13 July 2017. The full list of clauses which are within or modify the legislative competence of the Assembly are set out in a table at annex A to the LCM. The LCM stated that the Welsh Government would not be able to recommend to the Assembly that it gives consent to the Bill as drafted on introduction.
13.On 19 September 2017, the First Minister of Wales and the First Minister of Scotland sent a joint letter to the Prime Minister of the UK with a set of proposed amendments to the EU Withdrawal Bill. The letter explained that if the amendments were made to the Bill, both the Welsh Government and the Scottish Government could consider recommending to the Assembly and the Scottish Parliament that consent be given to the EU Withdrawal Bill. The amendments were subsequently tabled in Parliament but the amendments were not agreed by the House of Commons Committee.
14.Amendments were tabled by the UK Government to clause 11 of the EU Withdrawal Bill at House of Lords Committee stage in response to concerns raised regarding the impact of that Bill on devolution. These were debated, along with other amendments relating to devolution, on 21 March 2018. All amendments were withdrawn at House of Lords Committee stage with further consideration of these clauses to take place at House of Lords Report stage.
15.References below to the provisions of the EU Withdrawal Bill are references to the Bill as introduced in the House of Lords on 18 January 2018(3), which is the version of the Bill as it stood when the Bill of this Act was passed by the National Assembly for Wales on 21 March 2018.
16.The purpose of the Act is to ensure that the legislation covering subjects devolved to Wales works effectively after the ECA 1972 is repealed by the EU Withdrawal Bill, assuming the Bill is passed and the UK leaves the EU.
17.The Act gives regulation making powers to the Welsh Ministers to restate and demarcate EU derived legislation on subjects that are devolved to Wales, with any modifications that are necessary to make the legislation work following the withdrawal of the UK from the EU. This body of law to be set out in regulations is described in the Act as ‘EU derived Welsh law’. As a general rule, the Act will operate so that the same law in subjects devolved to Wales will apply after the UK exits the EU as before, subject to any necessary modifications of the law to deal with the fact that the UK will no longer be part of the institutional and functional arrangements provided under EU law.
18.The powers to restate and demarcate EU derived Welsh law include a power to make any amendments to that body of law in consequence of the UK’s withdrawal from the EU.
19.The Act is intended to operate alongside the EU Withdrawal Bill(4). The EU Withdrawal Bill—
repeals the ECA 1972 from “exit day”;
converts the body of EU law that applies directly in the UK (e.g. EU regulations that apply directly in the UK through the operation of the ECA 1972) into the domestic law of the UK jurisdictions (“UK law”);
preserves all of the laws that have been made in the UK to implement EU obligations (e.g. regulations made under section 2(2) of the ECA 1972 that implement EU directives);
incorporates any other rights that are available in domestic law by virtue of the 1972 Act, including the rights contained in the EU Treaties, that can currently be relied on directly in UK law without the need for specific implementing measures; and
provides that pre-exit case law of the Court of Justice of the European Union (“CJEU”) be given the same binding, or precedent, status in UK courts as decisions of the Supreme Court.
20.At the time of the passing of the Bill for this Act, “exit day” under the EU Withdrawal Bill, once enacted, will be 29 March 2019 at 11.00pm, unless the day or time on or at which the TEU and the TFEU cease to apply to the UK in accordance with Article 50(3) of the TEU is different and the EU Withdrawal Bill is amended by regulations made by a Minister of the Crown to change the definition of “exit day” accordingly.
21.The law that is converted or preserved by the EU Withdrawal Bill is “retained EU law”. Retained EU law is defined in clause 6(7) of the EU Withdrawal Bill as anything which, on or after exit day, continues to be, or forms part of domestic law by virtue of the provisions of the Act that convert or preserve EU law and UK law related to EU law. Retained EU law will also include any modifications of the law converted or preserved by or under the EU Withdrawal Bill or by other UK law from time to time; and it may include law on subjects that are devolved to the National Assembly for Wales as well as law on subjects that are not devolved.
22.At the time of the passing of the Bill for the Act, the EU Withdrawal Bill contained restrictions on the ability of the National Assembly for Wales to modify law converted or preserved by the EU Withdrawal Bill. Section 108A of the Government of Wales Act 2006 (“the GoWA 2006”), which provides for the legislative competence of the National Assembly for Wales, is amended by clause 11(2) of the EU Withdrawal Bill. The amendment prevents an Act of the Assembly from modifying, or conferring power to modify, retained EU law unless—
the modification would have been within the legislative competence of the Assembly immediately before exit day; or
the modification is authorised by provision made by Her Majesty in an Order in Council approved by both Houses of Parliament and the National Assembly for Wales.
23.The law restated and demarcated before exit day as EU derived Welsh law under the Act will not form part of retained EU law converted or preserved from exit day under the EU Withdrawal Bill. EU derived Welsh law will continue to be, or form part of, domestic law in relation to Wales by virtue of the provisions of the Act, rather than by virtue of any provision of the EU Withdrawal Bill. This means that EU derived Welsh law will fall outside the definition of “retained EU law” in clause 6(7) of the EU Withdrawal Bill and will not be subject to the restrictions on the Assembly’s power to modify retained EU law imposed by clause 11(2) of that Bill.
24.The Act provides further powers to the Welsh Ministers to make provision:
in relation to ensuring compliance with international obligations,
in relation to implementing the withdrawal agreement, and
to keep pace with EU law after the UK has withdrawn from the EU.
25.The Act establishes a default position in law that the Welsh Ministers’ consent is required before any person can make, confirm or approve subordinate legislation covering devolved subjects that are made under Acts of Parliament passed after the Act comes into force (and which meet other conditions). This default position can be changed by Parliament if it wishes when it creates new functions to make, confirm or approve subordinate legislation..
26.Where an individual section of the Act does not require any explanation or comment, none is given.
27.Section 2 of the Act defines EU derived Welsh law for the purpose of the Act as provision made by the Welsh Ministers in regulations under sections 3 and 4 of the Act, provision continuing in effect under or by virtue of regulations made under section 4 or provision specified by the Welsh Ministers in regulations under section 5. The majority of EU derived Welsh law will be based on the body of EU law and domestic implementing legislation that will cease to have effect in domestic law by virtue of the repeal of section 2(1) and (2) of the ECA 1972. EU derived Welsh law also includes a further category of domestic law which is not dependent on the ECA 1972 for its continued effect in domestic law; that is provision made in or under primary legislation other than the ECA 1972.
28.EU derived Welsh law is also to include any additions or modifications made to that body of law at any point in the future. ‘Modify’ is defined in section 20(1) of the Act and includes amend, repeal or revoke. Even if a provision of EU derived Welsh law is repealed or revoked and replaced with new provision, section 2, read alongside section 20(1), makes clear that the new provision could still form part of EU derived Welsh law. Whether such new provision does indeed form part of EU derived Welsh law will depend on the circumstances and the intention behind the modification.
55.This section gives the Welsh Ministers the power to restate and continue in effect the domestic legislation applicable in Wales in devolved subjects that is derived from EU law or relates to the EU or EEA for some or all purposes.
56.Section 4(1) specifies that the power in section 4(2) applies to enactments, as defined in section 20(1), which in some way operate to implement EU law obligations or relate otherwise to the EU or the EEA. On leaving the EU there could be doubt over whether enactments which presupposed membership of the EU would continue to work effectively. The same doubts could also apply to enactments which relate or refer to the EU or EEA.
57.The power in section 4(2) addresses this doubt. It does so by enabling the Welsh Ministers, by regulations, to
repeal or revoke such enactments and to restate them (subsection (2)(a)), and
disapply enactments and subsequently restate them (subsection (2)(b)).
58.Repeal or revocation of an enactment occurs when the enactment ceases to be part of the law of a jurisdiction. Wales remains part of the unified jurisdiction of England and Wales, despite devolution. This means that laws which apply only in relation to Wales technically form a part of the law recognised by the courts of England and Wales. Enactments that apply only to Wales, either in or under Acts of Parliament or in or under Acts of the National Assembly for Wales, and which include subject matter wholly within devolved competence are the kinds of enactments that can be repealed or revoked under subsection (2)(a).
59.Where an enactment applying to Wales also applies to England or it contains severable subject-matter that is not devolved to the National Assembly for Wales, it cannot be repealed or revoked under the power in subsection (2)(a). Subsection (2)(b) is intended to cover this type of enactment, which, given the limitations of devolved competence, will need to be disapplied in relation to Wales or in relation to devolved subject-matter (the disapplication being given effect by amendments to the enactment).
60.Many of the enactments covered by section 4 will require corrections to ensure that they can continue to operate effectively after the withdrawal of the UK from the EU. The powers in paragraphs (c) and (d) of subsection (2) enable the Welsh Ministers to restate the enactments with the modifications necessary to achieve this aim.
61.Section 4(2)(e) enables the Welsh Ministers to make further provision in connection with restatement. For example, this could include provision in relation to powers contained in EU directives to make EU tertiary legislation (see subsection (5)(f)). In such circumstances the EU directive will have been implemented in domestic legislation, but the power to make EU tertiary legislation will not form part of domestic law. The power to make EU tertiary legislation is needed to ensure the EU directive can be implemented effectively. This could include powers to update technical aspects of an EU directive to reflect practical, scientific or technological developments. Section 4(2)(e) therefore enables the Welsh Ministers to recreate those powers domestically so as to ensure the full legislative scheme can operate effectively after the UK withdraws from the EU.
62.Section 4(3) enables the Welsh Ministers to make regulations so that subordinate legislation made under enactments which are repealed, revoked or disapplied in relation to Wales by virtue of section 4(2) continues to have effect. Alternatively, section 4(2) could be used to restate the subordinate legislation in question. The Welsh Ministers will be able to decide whether to deal with such subordinate legislation under the powers in section 4(2) or (3). Subordinate legislation which continues to have effect in this way may also be modified to ensure it operates effectively.
63.As with section 3, section 4 sets out a non-exhaustive list of the type of modifications envisaged as being necessary to ensure the effective operation of the restated enactment. Specific examples include:
References to the EU: domestic enactments contain numerous references to “EU law”, “EU obligations”, “member States other than the UK” and “EEA states”. These will require modification to reflect the withdrawal of the UK from the EU. For example, regulation 2(1) of the Town and Country Planning (Environmental Impact Assessment) (Wales) Regulations 2017(13) defines “Union legislation”. The term is defined by reference to enactments which apply in relation to Wales which give effect to an “EU obligation”. These will require revision as there will be no provision in enactments which give effect to EU obligations following the withdrawal of the UK from the EU (unless the withdrawal agreement contains such provision – to be addressed by the power in section 10).
EU institutions: provisions in domestic enactments operate on the basis of EU membership, including the role played by various EU institutions and the provision of funding through EU-operated schemes. Regulation 3 of the School Milk (Wales) Regulations 2017(14) makes provision for the provision of “national aid” to applicants who are also in receipt of “Union aid”. Union aid is aid provided under Article 23 of Regulation (EU) No 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007. As “Union aid” will no longer be payable, an eligibility criteria based on receipt of such aid will no longer be operable. The amendment to the School Milk (Wales) Regulations 2017 will depend on the corresponding provision made to Regulation (EU) No 1308/2013 in regulations made under section 3.
Reciprocal arrangements: various arrangements and EU obligations directly or indirectly result in, or require, varying degrees of reciprocity across member States. One example is the principle of the mutual recognition of qualifications. The School Teachers’ Qualifications (Wales) Regulations 2012(15) make provision relating to individuals who are entitled to teach in the UK by virtue of Council Directive 2005/36/EC on the recognition of professional qualifications (although indirectly by reference to other domestic legislation). In restating the School Teachers’ Qualifications (Wales) Regulations 2012, modification could be made to address changes to the principle of mutual recognition of qualifications.
64.Subsection (5) also includes the example of conferring functions or imposing restrictions which were in an EU directive and in force immediately before exit day and which it is appropriate to retain. This reflects the possibility that the Welsh Ministers have implemented an EU directive but have not implemented the provisions in the directive which provide for the European Commission or an EU agency to carry out a function. In such an example, the domestic enactment could operate on the basis of a particular function being exercised by the European Commission or EU agency. Subsection (5)(f) confirms that the power to restate with modifications under subsection (2) or make further provision includes the power to recreate the function and confer it, for example, on the Welsh Ministers or an appropriate public authority.
65.No reference is made in subsection (5) to the power to modify an enactment as it is clear from subsection (1) and (2) and the definition of an enactment in section 20(2) that the power can be used to modify any enactment that is wholly or partly within devolved competence.
66.The restrictions on the exercise of the power in section 4(2) match those that apply in section 3, other than a minor difference in section 4(7)(d). Section 4(7)(d) reflects the limits on the Assembly’s legislative competence in relation to functions of a Minister of the Crown, specifically the restriction in paragraph 1(2) of Part 2 of Schedule 7 to the GoWA 2006 on conferring or imposing functions on a Minister of the Crown. However, as the power in section 4 is about restating the law, subsection (7)(d) confirms that regulations made under subsection (2) can restate a Minister of the Crown function due to the exception in paragraph 8 of Part 3 of Schedule 7 to the GoWA 2006.
67.The same timing restrictions also apply to regulations made under section 4 by virtue of subsection (8).
74.All EU derived Welsh law is connected in some way to an EU instrument. The CJEU has jurisdiction over any challenge of an EU instrument. An EU instrument could be challenged on the grounds of lack of competence, infringement of an essential procedural requirement, infringement of the Treaties or of any rule of law relating to their application or misuse of powers(16). A successful challenge to an EU instrument could cast doubt on any related EU derived Welsh law. Section 6(1) sets a default position that a decision of the CJEU that an EU instrument is invalid does not create a right in law to challenge any EU derived Welsh law. This does not affect any challenge on other public law grounds.
75.Section 6(2) provides three exceptions to the default position. The third exception, in paragraph (c) is a power for the Welsh Ministers to add further exceptions. This could include instances where the CJEU has determined an EU instrument is invalid after the withdrawal of the UK from the EU. Section 6(3) is a confirmation that the power in section 6(2)(c) includes the power to provide for a challenge to be made against a domestic public authority (but not a Minister of the Crown – reflecting the limits on the Assembly’s legislative competence and specifically the restriction in paragraph 1(2) of Part 2 of Schedule 7 to the GoWA 2006) instead of an EU institution.
86.The withdrawal of the UK from the EU could automatically result in the UK being in breach of the international obligations of the UK. This could occur for example by virtue of compliance with international obligations being linked to or dependent on continued compliance with EU law. The power in section 9 will enable the Welsh Ministers to make appropriate provision to prevent or remedy any such breach. This could include making provision to implement an international convention which was previously implemented by virtue of membership of the EU.
87.The power to make regulations is restricted to provision within devolved competence, as defined in section 17. As the power in section 9 may be used to make regulations to come into force prior to exit, the restriction in section 108(6)(c) of the GoWA 2006 on legislating incompatibly with EU law will continue to be relevant to regulations coming into force before exit.
88.The power includes the power to modify primary legislation, but is subject to similar restrictions as those that applied to sections 3 and 5. The only differences are there is no restriction on imposing or increasing taxation (although the limits on the Assembly’s legislative competence will provide a degree of restriction in terms of taxation) and section 9 cannot be made to implement the withdrawal agreement. The prohibition on using the power to implement the withdrawal agreement reflects the likelihood that any withdrawal agreement between the UK and the EU would form international obligations on the part of the UK. Implementation of the withdrawal agreement would fall under the power in section 10.
89.Section 10 gives the Welsh Ministers a power to make regulations to implement a withdrawal agreement concluded between the UK and the EU under Article 50(2) of the TEU (or that Article as applied by the Euratom Treaty).
90.The power can only be used to make provision that should be in force on or before exit day. Where any provision is needed to come into force after exit day, the power cannot be used. Any post-exit modifications would need to be the subject of further legislation.
91.The power can only be used to make provision within the devolved competence of the Assembly which is defined in section 17. Regulations made under this section may come into force before and on exit day. Where the regulations under section 10 are to come into force prior to exit, the restriction on legislating incompatibly with EU law in section 108(6)(c) of the GoWA 2006 will be relevant. Where regulations under section 10 are to come into force on exit day (to note the regulations cannot include provision to come into force after exit day – see subsection (1)), the restriction in section 108(6)(c) relating to legislating incompatibly with EU law will not be relevant as the UK will no longer be a member of the EU and therefore not subject to EU law.
92.The power can be used to modify primary legislation, including the Act. ‘Modify’ is defined in section 20(1) and includes amending, repealing or revoking legislation.
93.The power is subject to the same restrictions as apply to the power in section 3. Devolution provides further restriction on the scope of the power, not only in terms of the subject matter that could be contained in the regulations, but also in terms of the restrictions in Part 2 of Schedule 7 to the GoWA 2006 which includes prohibition on modifying specified provisions in the GoWA 2006, the GoWA 1998 and the Public Audit (Wales) Act 2013 and the entirety of the ECA 1972, the Data Protection Act 1998, the Human Rights Act 1998, the Civil Contingencies Act 2004 and the Re-Use of Public Sector Information Regulations 2005(18).
94.Section 18 confirms that the expiry of this power (and others in the Act) on exit day does not affect the continuation in force of the regulations made on or before exit day.
116.Provision made in subordinate legislation which needs Welsh Ministers’ consent under sections 14(1) and 15(1) must be within the Assembly’s legislative competence and could be contained in an Act of the Assembly. Section 16 provides a reporting mechanism to ensure the Assembly is kept informed of the exercise by the Welsh Ministers of their consent functions under sections 14(1) and 15(1) of the Act.
117.The reporting mechanism does not require an individual report in relation to each individual consent. A report laid before the National Assembly for Wales could include details of more than one consent, provided that the report is laid within 60 days of the consent being given and the report includes the details required in section 16(2) in relation to each consent.
118.Section 16(3) ensures that any days where the National Assembly for Wales is dissolved or in recess for more than four days are discounted for the purposes of calculating the 60-day period within which a report must be laid following the giving of consent. This ensures that the 60-day period does not expire while the Assembly is not sitting for an extended period of time that would prevent the Welsh Ministers from laying a report.
123.Section 19(2) provides that the powers to make regulations under the Act may make different provision for different purposes, different cases or different areas. This could include for example specifying a different exit day for different purposes, if that was considered appropriate.
124.All regulations made under the Act are subject to the same scrutiny framework set out under Schedule 2. Schedule 2 provides for three different procedures for scrutiny of regulations made under the Act. The standard procedure is the affirmative procedure, as laid out in paragraph 3. This applies to all regulations made under the Act, other than those which are subject to the urgent procedure or the enhanced procedure.
125.The urgent procedure is laid out in paragraph 4 and requires regulations subject to the procedure to be made and then laid before the Assembly. The regulations will cease to have effect after a period of 30 days after being made unless the regulations are approved by a resolution of the Assembly during the 30-day period. On laying the instrument (following its making) the Welsh Ministers must also lay a statement explaining the circumstances of the urgency and why it is necessary for the regulations to be subject to the urgent procedure.
126.The urgent procedure applies to regulations which contain a declaration that the Welsh Ministers are of the opinion that, by reason of urgency, it is necessary to make the regulations without a draft being laid and approved. Regulations made under sections 11, 12 and 22 cannot be subject to the urgent procedure and must in all cases fall to be scrutinised in accordance with the enhanced procedure set out in paragraph 1.
127.The procedure with the potential for the greatest level of scrutiny is the enhanced procedure as laid out in paragraph 1. Apart from regulations made under sections 11, 12 or 22, the scrutiny procedure to be applied is informed by the contents of the regulations rather than the power under which the regulations are made. All regulations made under sections 11, 12 or 22 of the Act are subject to the enhanced procedure set out in paragraph 1. Paragraph 1(1) lists the regulations that are subject to the enhanced procedure.
128.Under the enhanced procedure the Assembly may apply the standard affirmative procedure to any regulations that fall within paragraph 1(1) apart from those made under sections 12 or 22. The Assembly may choose this procedure by approving a draft of the regulations by resolution after 40 days have expired since the draft regulations were laid by the Welsh Ministers. The full enhanced procedure as set out in paragraph 1(6) to (14) applies to any regulations made under sections 12 or 22.
129.The Assembly may decide to apply the enhanced procedure to draft regulations falling within paragraph 1(1) by resolving within the 30-day period following laying that the procedure should apply. A committee of the Assembly charged with reporting on the draft regulations may recommend within the same 30-day period that the enhanced procedure should apply. In the event of such a recommendation, the enhanced procedure is to apply unless the Assembly rejects the recommendation by resolution within the same 30-day period.
130.Where the enhanced procedure applies, paragraph 1(6) to (14) sets out the applicable procedure. This is a two-stage procedure during which the Welsh Ministers may revise the draft regulations. The initial stage is a 60-day period after laying of the draft regulations where representations may be made, the Assembly may pass resolutions and a committee of the Assembly charged with reporting on the draft regulations may make recommendations. All such representations, resolutions and recommendations must be taken into account by the Welsh Minsters. Having laid a statement under paragraph 1(7), the Welsh Ministers may make regulations in the terms of the draft regulations if they are approved by a resolution of the Assembly. Where the Welsh Ministers wish to make material changes to the draft regulations, they must lay before the Assembly the revised draft regulations and a statement in accordance with paragraph 1(11)(b). The Welsh Ministers can make the revised draft regulations if they are approved by a resolution of the Assembly.
131.Paragraph 1(9) and (13) enables a committee of the Assembly to recommend that no further proceedings are taken in respect of the draft regulations or revised draft regulations. Where such a recommendation is made, no further proceedings can take place in respect of the draft regulations or revised draft regulations unless the recommendation is rejected by resolution of the Assembly. This means that without the Assembly rejecting the recommendation, the draft regulations or revised draft regulations cannot be made by the Welsh Ministers.
132.Paragraph 2(1) and (2) makes provision for when the Welsh Ministers must not and need not disclose representations made about draft regulations or revised draft regulations under paragraph 1. However, the provision in paragraph 2(1) and (2) does not operate to prevent the Welsh Ministers from disclosing to a committee of the Assembly charged with reporting on the draft regulations or revised draft regulations.
133.Section 14 of the IA 1978 provides that where an Act confers power to make subordinate legislation it implies, unless the contrary intention appears, a power, exercisable in the same manner and subject to the same conditions or limitations, to revoke, amend or re-enact any instrument made under the power. This provides that any revoking, amending or re-enacting instrument is subject to the same scrutiny requirements applicable to the original instrument. Paragraph 5 provides a contrary intention for the purposes of section 14 of the IA 1978. This reflects the fact that the scrutiny arrangements applicable under Schedule 2 are governed by the contents of the regulations (other than regulations made under section 11). Therefore an original instrument made under the standard procedure may later require to be amended under the urgent procedure. Paragraph 5 enables this to take place.
134.Paragraph 6 reflects the possibility that a statutory instrument containing regulations made under the Act may also contain regulations made under a different power which is subject to the negative resolution procedure. Paragraph 6 provides that in such circumstances the applicable scrutiny arrangements are those set out under the Act.
135.The explanatory notes have already highlighted a number of the terms defined in section 20 by reference to the provisions to which they are relevant.
136.‘Exit day’ is a key term in the Act and is defined in section 20(1). It is to be appointed in regulations made by the Welsh Ministers. Article 50(3) of the TEU provides that the Treaties will cease to apply to the UK from the date of entry into force of the withdrawal agreement or, failing that, two years after the notification under Article 50(2). Article 50(3) goes on to provide that the European Council may, in agreement with the UK, unanimously decide to extend this period.
137.The UK notified the European Council of its intention to withdraw from the EU on 29 March 2017. In the absence of a withdrawal agreement being agreed first or an extension being agreed between the UK and the European Council, the Treaties will cease to apply at 11:00p.m. on 29 March 2019. ‘Treaties’ is defined in Article 1 of the TEU as the TEU and TFEU.
138.Leaving the appointing of exit day to regulations reflects the possibilities catered for under Article 50(2) of the TEU. In making regulations that specify exit day the Welsh Ministers must adhere to the requirements laid out in section 20(4).
139.First, the Welsh Ministers must have regard to the day appointed for the same or similar purposes in or under an Act of Parliament of the UK to give effect to the withdrawal of the UK from the EU. If passed, the exit day specified in the EU Withdrawal Bill currently before Parliament, will become relevant to the exercise of the power of the Welsh Ministers to appoint exit day for the purposes of the Act. However, this would not require the Welsh Ministers to adopt the same exit day.
140.The second requirement in section 20(4) provides that the Welsh Ministers cannot specify exit day at a point in time where the Treaties still apply to the UK. Article 50 of the TEU provides for the withdrawal of Member States from the EU with Article 50(3) providing for the moment at which the Treaties are to cease to apply to a Member State. Section 20(4)(b) therefore ensures that exit day can only be a point in time after the Treaties have ceased to apply to the UK in accordance with Article 50(3). The Welsh Ministers would be unable to specify a date at which the Treaties still apply due to the restriction on legislating incompatibly with EU law contained in section 80(8) of the GoWA 2006, but section 20(4)(b) confirms this position. The Treaties for the purposes of section 20(4)(b), consistent with the TEU, are the TEU and the TFEU, but by virtue of section 20(7) it also captures the Euratom Treaty.
141.Section 20(2) contains further provision relevant to the definition of exit day. A number of the provisions in the Act operate by reference to before, after or on exit day. Section 20(2) clarifies the exact point in time to which such references are to be read. Where the Welsh Ministers appoint a time as well as day as exit day, references are to be read in accordance with the time specified. For example, if the Welsh Ministers appoint 11:00p.m. on 29 March 2019, a reference in the Act to regulations coming into force on exit day is to be read as a reference to those regulations coming into force at 11:00p.m. on 29 March 2019. Where the Welsh Ministers do not appoint a time as well as a day as exit day, any reference to exit day in the Act is to be read as a reference to the beginning of that day.
142.The power in section 22 may be used to repeal the Act in its entirety or any provision contained in the Act. Regulations made under section 22 are subject to the enhanced procedure as set out in paragraph 1(6) to (14).
143.The short title of the Act is the ‘Law Derived from the European Union (Wales) Act 2018
144.The following table sets out the dates for each stage of the Act’s passage through the National Assembly for Wales. The Record of Proceedings and further information on the passage of this Act can be found on the National Assembly for Wales’ website at:
Introduced 7 March 2018
Stage 1 - Debate 13 March 2018
Stage 2 Scrutiny Committee – consideration of amendments 20 March 2018
Stage 3 Plenary - consideration of amendments 21 March 2018
Stage 4 Approved by the Assembly 21 March 2018
Royal Assent 6 June 2018
https://services.parliament.uk/bills/2017-19/europeanunionwithdrawal.htmlBack [1]
R (on the application of Miller and another) v Secretary of State for Exiting the European Union [2017] UKSC 5, at paragraph 65.
https://publications.parliament.uk/pa/bills/lbill/2017-2019/0079/lbill_2017-20190079_en_1.htmBack [3]
For a detailed explanation of the provisions of the EU (Withdrawal) Bill see the explanatory notes prepared by the UK Government.
S.I. 2017/567 (W. 136)Back [13]
S.I. 2017/724 (W. 174)Back [14]
S.I. 2012/724 (W. 96)Back [15]
Article 263 of the TFEU.
S.I. 2005/1505Back [18]