3. Statement by the Cabinet Secretary for Finance: JMC (EU Negotiations) Meeting, 22 February 2018

Part of the debate – in the Senedd at 2:47 pm on 27 February 2018.

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Photo of Mark Drakeford Mark Drakeford Labour 2:47, 27 February 2018

Llywydd, thank you for the opportunity to make a statement on the latest meeting of the Joint Ministerial Committee (European Union Negotiations)—the JMC(EN)—which was held in London on Thursday last, 22 February.  

The JMC was chaired by the Chancellor of the Duchy of Lancaster, David Lidington, and was attended by the Secretary of State for Exiting the European Union, David Davis, and the Secretaries of State for Wales, Scotland and Northern Ireland, as well as Michael Russell, the Scottish Government’s Minister for UK Negotiations on Scotland’s Place in Europe, and myself. Northern Ireland was represented by civil servants, following the failure of the latest attempt to put a new Executive in place.

The meeting was constructive. It took place just ahead of the UK Cabinet committee meeting at Chequers intended to provide greater clarity about the Government’s positioning on the long-term relationship between the UK and the EU-27. Both Mike Russell and I gave clear and unequivocal presentations of our well-established priorities, stressing the importance of putting the needs of the economy at the head of that priority list and ensuring the rapid agreement of a transition phase, a step which, together with Plaid Cymru, the Welsh Government called for formally as long ago as January 2017. I also emphasised the importance of clear commitment from the UK Government to the engagement of the devolved administrations in the second-phase negotiations, particularly where these concerned devolved policy areas. I am glad to be able to report that the UK Government made a commitment to bring forward proposals in this regard for consideration at a March meeting of the JMC.

Llywydd, there was considerable speculation in advance of the meeting about progress on the European Union (Withdrawal) Bill currently before the House of Lords. As Members here know, the UK Government has given commitments to both Houses of Parliament that it will work with the devolved administrations to bring forward amendments that might enable both the Scottish Parliament and the National Assembly to give legislative consent to the withdrawal Bill.

While intensive work at official level has been under way for a number of weeks, we were disappointed that the UK Government was only able to put a proposal on the table very shortly before the Thursday meeting. This meant that we were not able to have the full and meaningful discussion of the proposals that the importance of this matter merited.

Nevertheless, all three Governments agreed that they shared the objective of reaching an agreement on these issues, and while the UK proposals fall some way short of what would be acceptable to either ourselves or to the Scottish Government, we agreed that they provide a basis for further discussion at political level in the very near future.

Mr Lidington sketched out in his speech yesterday some of the thinking behind the UK Government’s new proposal. I would like to acknowledge that the UK Government does appear to have moved some distance from its original position, particularly on clause 11. That original position was wholly unacceptable to the Welsh Government and, I believe, to the majority in this Assembly. However, as the First Minister said yesterday, we now need further progress that goes beyond warm words and which makes agreement possible. I remain hopeful that such an agreement can be reached and I will, of course, update Members as developments happen.

This is, Llywydd, also highly relevant to the fact that, as is now known, we have today also taken steps towards the introduction of our own continuity legislation. One of the reasons why there has been such frustration at the slow pace with which the UK Government has taken forward discussions on amending the EU withdrawal Bill is the implications of this slow progress on our own plans. We have been absolutely clear, and remain completely clear, that our preference is for a workable UK-level Bill. But, as is well known, and with strong support across this Chamber, very regularly articulated, for example, by Steffan Lewis, we have been working hard on a fallback option, both to provide legal continuity of EU legislation about devolved matters in Wales, and to safeguard devolution. We have come to the point where we cannot delay any longer if this legislation, even as an emergency Bill, is to have a reasonable opportunity of getting onto the statute book in time for us to be able to take the steps necessary to secure legislative continuity.

Our Bill, the law derived from the European Union (Wales) Bill, remains a fallback, fail-safe option. But it is, we believe, a robust, considered piece of legislation, which will do the job required if our preferred way forward—a withdrawal Bill that respects the devolution settlement—is denied to us by the UK Government. I continue, Llywydd, to hope, that the discussions at next week’s JMC will lead to a successful outcome, one that enables us to recommend that the National Assembly gives its legislative consent to the EU withdrawal Bill while it is still before Parliament. If we succeed in that endeavour, we will not hesitate to withdraw the Bill we will present here.

In summary, Llywydd, in the whole Brexit discussions, the Welsh Government remains firmly focused on the best outcomes for Wales. As we leave the European Union, the needs of jobs and our economy must come first. That process cannot and must not be used as an excuse to row back the boundaries of devolution within the United Kingdom, and the powers of this National Assembly, as confirmed in two referendums of the Welsh people, must be respected and protected. Our efforts remain constructively but unremittingly focused on achieving those ends.