Clause  1:  saving  for  the  implementation  period:  the  power  to  exclude   international  agreements  from  the  definition  of  EU  treaties

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  No
Parliamentary  Procedure:  Draft  affirmative  procedure  for  the  power  to  exclude  international   agreements  from  the  definition  of  EU  treaties

Context  and  purpose

258.On  exit  day  (as  defined  by  section  21(1)  of  the  EU  (Withdrawal)  Act  2018),  the  UK  will leave  the  EU,  and  the  EU  (Withdrawal)  Act  2018  will  repeal  the  ECA.  We  will  need  to ensure  that  the  UK  can  continue  to  apply  EU  law  during  the  implementation  period. This  will  ensure  that  businesses  and  citizens  only  need  to  prepare  for  one  change  as  we bridge  to  the  future  relationship.  Part  4  of  the  Withdrawal  Agreement  provides  for  the implementation  period.  To  achieve  this,  clause  1  inserts  a  new  section  1A  in  to  the  EU (Withdrawal)  Act  2018.  Section  1A  saves  and  amends  the  ECA  for  the  duration  of  the implementation  period,  reflecting  that  the  UK  is  no  longer  a  Member  State.  Whilst  up until  exit  day  the  ECA’s  purpose  is  to  implement  EU  law  as  obligated  by  the  UK’s membership  of  the  EU,  during  the  implementation  period,  the  saved  and  repurposed ECA  will  implement  EU  law  as  set  out  in  the  Withdrawal  Agreement.

259.As  well  as  saving  the  ECA,  section  1A  will  take  a  snapshot  of  what  is  an  ‘EU  Treaty’  on exit  day.  This  will  provide  certainty  as  to  what  falls  within  the  definition  of  ‘the Treaties’  or  ‘EU  Treaties’  at  exit  day  and  the  Treaties  will  continue  to  have  effect during  the  implementation  period  through  the  saved  ECA.
260.Article  129(4)  of  the  Withdrawal  Agreement  states  that  the  UK  Government  may negotiate,  sign  and  ratify  international  agreements  entered  into  in  its  own  capacity covering  areas  that  are  within  the  ‘exclusive  competence’  of  the  EU,  as  long  as  they  do not  enter  into  force  until  after  the  implementation  period,  unless  authorised  by  the  EU.
261.This  clause  provides  a  power  to  Ministers  to  exclude  an  international  agreement  from the  definition  of  Treaties/EU  Treaties,  where  appropriate.  Section  1A(3)(a)(ii)  of  the  Bill
is  designed  to  allow  for  the  eventuality  where  the  UK  negotiates,  signs  and  ratifies  an   international  agreement  during  the  implementation  period  in  areas  of  EU  exclusive   competence,  the  EU  authorises  the  UK  to  bring  it  into  force  during  the  implementation   period,  and,  in  order  to  ensure  there  is  no  conflict  with  existing  international   obligations  that  flow  through  the  ECA,  the  UK  needs  to  remove  an  existing  EU-­‐‑third   country  international  agreement  from  the  definition  of  Treaties/EU  Treaties.

Justification  for  power

262.During  the  implementation  period  there  needs  to  be  certainty  as  to  what  falls  within the  definition  of  ‘Treaty’  or  ‘EU  Treaty’  so  that  any  rights  that  have  been  given  effect  to under  those  ‘Treaties’  or  ‘EU  Treaties’  will  be  saved,  including  any  rights  given  effect to  under  s.2(1)  and  regulations  made  under  s.2(2)  ECA.  ‘Fixing’  the  list  by  virtue  of 1A(3)(a)(ii)  provides  certainty  as  to  what  falls  within  that  definition  at  exit  day.  This also  reflects  the  fact  that  from  exit  day,  the  UK’s  obligations  will  derive  from  the Withdrawal  Agreement  under  international  law,  rather  than  from  its  position  as  a Member  State.

263.In  areas  of  exclusive  competence  of  the  EU,  the  EU  may  authorise  the  coming  into force  of  new  international  treaties  agreed  between  the  UK  and  third  countries  before the  end  of  the  implementation  period.  This  may  require  the  removal  of  an  existing international  agreement  from  the  definition  of  ‘the  Treaties’  at  s.1(2)  ECA  if  this conflicts  with  our  obligations  under  the  new  agreement.

Justification  for  procedure

264.The  power  to  exclude  treaties  gives  the  potential  for  significant  policy  change,  and  as  a result  secondary  legislation  under  this  power  is  subject  to  the  draft  affirmative procedure  to  to  provide  appropriate  scrutiny  of  the  proposed  legislation.

Clause  3:  supplementary  power  in  connection  with  the  Withdrawal   Agreement

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes
Parliamentary  Procedure:  Negative  procedure  for  amendments  to  secondary  legislation;  draft   affirmative  procedure  for  amendments  to  primary  legislation  or  retained  direct  principal  EU   legislation.

Context  and  purpose

265.Clause  2  modifies  EU-­‐‑derived  domestic  legislation  so  that  it  continues  to  function during  the  implementation  period.  This  will  be  achieved  by  applying  ‘glosses‘  to  EU-­‐‑ related  terminology  in  this  legislation  so  that  it  continues  to  operate  in  light  of  the implementation  period.  For  example,  these  ‘glosses’  clarify  how  references  to  EU  law, an  EU  Treaty  (such  as  the  Treaty  on  the  Functioning  of  the  European  Union  or  the Treaty  on  European  Union),  to  an  area  of  the  EU  or  a  citizen  of  the  EU  should  be  read during  the  implementation  period.  Further,  clause  2  provides  that  even  where  EU-­‐‑ derived  legislation  is  not  the  subject  of  a  specific  gloss,  it  should  be  interpreted  so  far as  is  possible  and  necessary  in  line  with  Part  4  of  the  Withdrawal  Agreement.  The provisions  in  clause  2  which  save  EU-­‐‑derived  domestic  legislation  on  exit  day,  and  the glosses  applying  to  such  legislation  during  the  implementation  period,  will automatically  be  repealed  at  the  end  of  the  implementation  period  when  they  are  no longer  needed.

266.Clause  3  provides  Ministers  of  the  Crown  with  a  supplementary  power  in  connection with  the  implementation  period.  This  clause  will  insert  a  new  section  8A  after  section  8 in  the  EU  (Withdrawal)  Act  2018.  This  power  is  designed  to  ensure  that  the  domestic statute  book  fully  reflects  the  UK’s  obligations  under  Part  4  of  the  Withdrawal Agreement  and  operates  properly  in  that  light.  It  also  enables  Ministers  to  amend provisions  of  the  EU  (Withdrawal)  Act  2018  in  consequence  of  the  repeal  of  the  ECA saving  on  IP  completion  day.  New  section  8A(1)  sets  out  what  regulations  made  under the  power  can  do.

267.Subsection  (1)(a)  gives  Ministers  the  power  to  make  other  modifications  for  the purposes  of  section  1B(3)(f)(i).  This  provides  a  power  for  the  Minister  of  the  Crown  to
specify  additional  glosses  to  EU-­‐‑related  terms  in  EU-­‐‑derived  domestic  legislation   where  it  is  appropriate  to  do  so.  This  is  a  limited  power  to  modify  legislation  for  the   purposes  of  ensuring  that  legislation  continues  to  work  for  the  time-­‐‑limited   implementation  period.

268.Subsection  (b)  provides  for  Ministers  to  disapply  the  glossing  approach  for  EU-­‐‑related references  set  out  in  new  section  1B(3)  and  (4).  This  power  can  affect  a  particular  piece of  legislation  or  specific  term  in  a  piece  of  legislation,  to  ensure  that  it  reads  as  it  would have  been  without  the  gloss.  This  is  intended  to  make  legislation  operable  that  is caught  by  the  general  glosses  either  inadvertently,  or  in  cases  where  we  would  want  to make  specific  exceptions.

269.Subsection  (c)  gives  Ministers  the  power  by  regulations  to  change  a  specific  gloss  for particular  EU-­‐‑related  terms  to  read  differently  so  as  to  enable  the  piece  of  legislation  to work  as  necessary  during  the  implementation  period.  This  might  enable  an  EU  related reference  to  be  glossed  in  a  different  way.  This  means  a  different  approach  to  the general  gloss  can  be  taken  in  order  to  suit  specific  circumstances.  The  purpose  of  this application  is  to  fix  any  errors  caused  by  the  glosses,  where  their  application  has  not had  the  desired  effect,  but  the  legislation  still  requires  to  be  read  differently  for  the purposes  of  Part  4  of  the  Withdrawal  Agreement.  This  could  be  to  add  in  some clarifying  wording,  or  to  take  a  different  approach  to  the  general  gloss  if  needed.

270.Subsection  (d)  provides  that  Ministers  may  repeal  provisions  of  the  EU  (Withdrawal) Act  2018  that  need  to  be  repealed  or  amended  in  consequence  of  the  repeals  of  the  new provisions  which  establish  the  implementation  period  at  new  section  1A(5)  or  1B(6). This  may  be  necessary  in  the  interests  of  certainty  and  clarity,  as  the  Act  will  have  been substantially  amended  to  provide  for  the  implementation  period.  At  the  end  of  that period,  some  of  these  modifications  will  no  longer  be  applicable  and  therefore  should be  removed  in  order  for  the  law  to  function  clearly.

271.Subsection  (e)  provides  that  Ministers  may  make  provision,  not  covered  by  paragraphs (a)to  (d)  above,  but  which  is  appropriate  for  the  purposes  of,  or  otherwise  in connection  with,  Part  4  of  the  Withdrawal  Agreement.  This  power  is  available  to Ministers  to  ensure  that  domestic  legislation  fully  reflects  Part  4  of  the  Withdrawal Agreement  and  otherwise  operates  properly.  For  example,  this  power  would  be available  to  remove  EU-­‐‑related  references  in  domestic  legislation  that  were  redundant or  produced  the  wrong  result  in  light  of  the  effect  of  Part  4  of  the  Withdrawal Agreement  and  the  UK  having  left  the  EU.

272.The  power  in  new  section  8A  may  be  used  to  modify  any  provision  made  by  or  under an  enactment  as  defined  in  section  20(1)  of  the  EU  (Withdrawal)  Act  2018.  This  is
therefore  a  so  called  ‘Henry  VIII’  power.  Subsection  (3)  provides  that  ‘enactment’  in   this  case  does  not  include  primary  legislation  passed  or  made  after  IP  completion  day.

273.The  UK  Government  will  not  normally  use  the  power  to  amend  domestic  legislation  in areas  of  devolved  competence  without  the  agreement  of  the  relevant  devolved administration.

274.The  power  is  sunsetted  in  subsection  (4)  so  that  no  regulations  may  be  made  under this  section  after  the  end  of  a  period  of  two  years  starting  from  IP  completion  day.
Justification  for  power

275.The  various  applications  of  this  power  in  new  section  8A  from  subsections  (1)(a)  to  (c) to  provide  for  additional  glosses,  to  disapply  specific  glosses  and  to  make  different provision  for  glosses  to  EU-­‐‑related  terms  in  EU-­‐‑derived  domestic  legislation,  as  well  as the  residual  power  in  subsection  (e),  are  necessary  to  ensure  certainty  in  the application  and  meaning  of  the  law  during  the  implementation  period.  The  powers  in (1)(a)  to  (c)  will  be  used  to  ensure  that  the  statute  book  is  able  to  function  properly during  the  implementation  period  in  accordance  with  our  obligations  under  the Withdrawal  Agreement.  The  sweeper  in  paragraph  (e)  comes  after  the  list  of  those specific  powers  and  the  Government  regards  use  of  the  sweeper  being  limited  to  the sorts  of  technical  corrections  intended  by  those  paragraphs  above.

276.Government  departments  and  the  devolved  administrations  have  tested  the  glosses  in the  Bill  against  their  legislation  but  given  the  wide-­‐‑ranging  application  of  the  glosses across  the  statute  book,  it  is  possible  that  there  may  be  cases  where  the  glosses  produce the  wrong  result  or  further  glosses  or  other  modifications  are  needed.  It  is  critical  that legislation  continues  to  function  properly  during  the  implementation  period,  in  order to  provide  continuity  and  certainty  to  business  and  individuals.  In  the  event  that  an EU-­‐‑related  term  which  has  not  been  glossed  is  found  on  the  statute  book  during  the implementation  period,  it  will  be  critical  for  legal  certainty  for  a  Minister  of  the  Crown, or  the  devolved  authorities  in  respect  of  legislation  within  devolved  competence,  or  a Minister  of  the  Crown  and  a  devolved  authority  acting  jointly,  to  be  able  to  act  swiftly to  make  the  appropriate  amendments  so  that  it  is  clear  how  the  legislation  should  be interpreted.

277.This  power  is  restricted  at  subsection  (3)  to  ensure  it  cannot  be  used  to  modify  primary legislation  enacted  after  the  end  of  the  implementation  period.  The  power  is  further restricted  at  subsection  (4)  by  a  sunset  which  provides  that  no  regulations  can  be  made under  this  power  two  years  after  the  end  of  the  implementation  period.

Justification  for  procedure

278.Any  need  for  the  glossing  of  terms  not  already  identified  and  provided  for  expressly  in the  Bill  (or  other  corrections  made  under  the  new  section  8A  power)  will  need  to  be made  swiftly  in  order  to  ensure  legal  certainty.  The  power  can  be  used  to  modify primary  legislation,  including  to  amend  or  repeal  enactments,  but  it  is  technical  in nature,  limited  to  correcting  the  the  UK  statute  book  to  reflect  the  UK’s  obligations under  Part  4  of  the  Withdrawal  Agreement,  where  the  meaning  of  the  provision  is unclear  or  simply  produces  the  wrong  result.  However,  in  order  to  fulfil  this  goal,  the power  must  be  capable  of  modifying  both  primary  and  secondary  legislation,  until  the end  of  the  implementation  period.  For  this  reason,  statutory  instruments  laid  under this  power  modifying  secondary  legislation  will  be  subject  to  the  negative  procedure, whilst  statutory  instruments  amending  primary  legislation  and  retained  direct principal  EU  legislation,  will  be  subject  to  the  draft  affirmative  procedure  to  provide appropriate  scrutiny  of  the  proposed  legislation.

Clause  4:  powers  corresponding  to  clause  3  involving  devolved   authorities

Power  conferred  on:  A  devolved  authority,  or  a  Minister  of  the  Crown  acting  jointly  with  one   or  more  devolved  authorities
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes
Parliamentary  Procedure:  Negative  procedure  for  amendments  to  secondary  legislation;  draft   affirmative  procedure  for  amendments  to  primary  legislation  and  retained  direct  principal  EU   legislation.

Context  and  purpose

NB.  The  context  for  this  power  is  the  same  as  that  for  clause  3  above.

279.Clause  4  provides  devolved  authorities  acting  alone,  and  for  a  Minister  of  the  Crown acting  jointly  with  a  devolved  authority,  a  supplementary  power  in  connection  with the  implementation  period.  After  Part  1  of  Schedule  2  to  the  EU  (Withdrawal)  Act 2018,  this  clause  will  insert  a  new  Part  1A.  These  powers  are  designed  to  ensure  that the  domestic  statute  book  fully  reflects  the  UK’s  obligations  under  Part  4  of  the Withdrawal  Agreement  and  operates  properly  in  that  light.

280.Paragraph  11A(1)(a)  to  (d)  gives  devolved  authorities  the  power  to: a. make  other  modifications  for  the  purposes  of  section  1B(3)(f)(i).  This  provides  a power  for  a  devolved  authority  to  specify  additional  glosses  for  EU-­‐‑related terms  in  EU-­‐‑derived  domestic  legislation  where  it  is  appropriate  to  do  so.  This is  a  limited  power  to  non-­‐‑textually  amend  legislation  for  the  purposes  of ensuring  that  legislation  continues  to  work  for  the  time-­‐‑limited  implementation period; b. disapply  the  glossing  approach  for  EU-­‐‑related  references  set  out  in  new  section 1B(3)  or  (4).  This  power  can  affect  a  particular  piece  of  legislation  or  specific term  in  a  piece  of  legislation,  to  ensure  that  it  reads  as  it  would  have  been without  the  gloss.  This  is  intended  to  make  operable  legislation  that  is  caught by  the  general  glosses  either  inadvertently,  or  in  cases  they  would  want  to make  specific  exceptions  to; c. change  a  specific  gloss  for  particular  EU-­‐‑related  terms  to  read  differently  so  as to  enable  the  piece  of  legislation  to  work  as  necessary  during  the implementation  period.  This  might  enable  an  EU  related  reference  to  be   glossed  in  a  different  way.  This  means  a  different  approach  to  the  general  gloss   can  be  taken  in  order  to  suit  specific  circumstances.  The  purpose  of  this   application  is  to  fix  any  errors  caused  by  the  glosses,  where  their  application   has  not  had  the  desired  effect,  but  the  legislation  still  requires  to  be  read   differently  for  the  purposes  of  Part  4  of  the  Withdrawal  Agreement.  This  could   be  to  add  in  some  clarifying  wording,  or  to  take  a  different  approach  to  the   general  gloss  if  needed;  and d. make  provision,  not  covered  by  paragraphs  (a)  to  (c)  above,  but  which  is appropriate  for  the  purposes  of,  or  otherwise  in  connection  with,  Part  4  of  the Withdrawal  Agreement.  This  power  is  available  to  the  devolved  authorities  to ensure  that  domestic  legislation  fully  reflects  Part  4  of  the  Withdrawal Agreement  and  otherwise  operates  properly.  For  example,  this  power  would be  available  to  remove  EU-­‐‑related  references  in  domestic  legislation  that  were redundant  or  produced  the  wrong  result  in  light  of  the  effect  of  Part  4  of  the Withdrawal  Agreement  and  the  UK  having  left  the  EU.

281.Paragraph  11A(2)  confers  the  same  power  as  at  11A(1)  on  a  Minister  of  the  Crown acting  jointly  with  a  devolved  authority.

282.When  acting  alone  under  paragraph  11A(1)  the  devolved  authorities  can  only  make provision  which  is  within  the  devolved  competence,  as  defined  in  paragraphs  11D  to 11F.  In  addition,  by  virtue  of  the  application  of  paragraphs  5  to  7  of  Schedule  2  to  the EU  (Withdrawal)  Act  2018,  paragraph  11C  provides  that  any  consent,  consultation  or joint  exercise  requirements  which  would  otherwise  be  required  in  respect  of  the provision  being  made  will  be  required  when  a  devolved  authority  exercises  the powers  in  paragraph  11A  to  make  that  provision.

283.The  power  is  sunsetted  in  paragraph  11A(5)  so  that  no  regulations  may  be  made  under this  section  after  the  end  of  a  period  of  two  years  starting  from  IP  completion  day.

Justification  for  power

284.The  various  applications  of  these  powers  in  new  Part  1A  of  Schedule  2  to  provide  for additional  glosses,  to  disapply  specific  glosses  and  to  make  different  provision  for glosses  to  EU-­‐‑related  terms  in  EU-­‐‑derived  domestic  legislation,  as  well  as  the  residual power  in  paragraphs  11A(1)(d)  and  11A(2)(d),  are  necessary  to  ensure  certainty  in  the application  and  meaning  of  the  law  during  the  implementation  period.  The  powers  in 11A(1)(a)  to  (c)  and  11A(2)(a)  to  (c)  will  be  used  to  ensure  that  the  statute  book  is  able to  function  properly  during  the  implementation  period  in  accordance  with  our obligations  under  Part  4  of  the  Withdrawal  Agreement.  Government  departments  and the  devolved  administrations  have  tested  the  glosses  in  the  Bill  against  their  legislation   but  given  the  wide-­‐‑ranging  application  of  the  glosses  across  the  statute  book,  it  is   possible  that  there  may  be  cases  where  the  glosses  produce  the  wrong  result  or  further   glosses  or  other  modifications  are  needed.  It  is  critical  that  legislation  continues  to   function  properly  during  the  implementation  period,  in  order  to  provide  continuity   and  certainty  to  business  and  individuals.  In  the  event  that  an  EU-­‐‑related  term  which   has  not  been  glossed  is  found  on  the  statute  book  during  the  implementation  period,  it   will  be  critical  for  legal  certainty  for  the  devolved  authorities  or  a  Minister  of  the   Crown  and  a  devolved  authority  acting  jointly,  to  be  able  to  act  swiftly  to  make  the   appropriate  amendments  so  that  it  is  clear  how  the  legislation  should  be  interpreted.

285.This  power  is  restricted  at  paragraph  11A(4)  to  ensure  it  cannot  apply  to  primary legislation  enacted  after  the  completion  of  the  implementation  period.  The  power  is further  restricted  at  paragraph  11A(5)  by  a  sunset  which  provides  that  no  regulations can  be  made  under  this  power  two  years  after  the  end  of  the  implementation  period.

Justification  for  procedure

286.Any  need  for  glossing  of  terms  not  already  identified  and  provided  for  expressly  in  the Bill  (or  other  corrections  made  under  the  new  Part  1A  powers)  will  need  to  be  made swiftly  in  order  to  ensure  certainty.  The  powers  can  be  used  to  modify  primary legislation  but  is  technical  in  nature,  limited  to  correcting  the  interpretation  of  the statute  book  to  reflect  Part  4  of  the  Withdrawal  Agreement,  where  the  meaning  is unclear  or  simply  produces  the  wrong  result.  However,  in  order  to  fulfil  this  goal,  the power  must  be  capable  of  modifying  both  primary  and  secondary  legislation,  until  the end  of  the  implementation  period.  For  this  reason,  regulations  laid  by  a  Minister  of  the Crown  modifying  secondary  legislation  will  be  subject  to  the  negative  procedure, whilst  regulations  amending  primary  legislation  and  retained  direct  principal  EU legislation,  will  be  subject  to  the  draft  affirmative  procedure  to  provide  appropriate scrutiny  of  the  proposed  legislation,  and  equivalent  scrutiny  procedures  will  apply  in the  devolved  legislatures  for  regulations  laid  by  a  devolved  authority.

Clause  27:  deficiencies  in  retained  EU  law:  amendments  to  the  existing   correcting  powers  in  the  EU  (Withdrawal)  Act  2018

Power  conferred  on:  A  Minister  of  the  Crown,  a  devolved  authority,  or  a  Minister  of  the   Crown  acting  jointly  with  one  or  more  devolved  authorities
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes
Parliamentary  Procedure:  Existing  procedure  which  applies  to  section  8(1)  of,  or  Part  1  of   Schedule  2  to,  the  EU  (Withdrawal)  Act  2018  -­‐‑  draft  affirmative  or  negative  (with  the  ‘sifting’   procedure  applying  to  certain  negative  instruments),  subject  to  urgent  procedures

Context  and  purpose

287.The  EU  (Withdrawal)  Act  2018  contains  a  power  at  section  8(1)  to  correct  deficiencies in  retained  EU  law  to  ensure  that  the  UK  statute  book  functions  on  exit  day  when  the UK  ceases  to  be  a  Member  State.  That  Act  was  passed  without  prejudice  to  the negotiations  and  the  final  content  of  the  Withdrawal  Agreement  with  the  EU. Statutory  instruments,  including  those  made  under  section  8,  are  therefore  being  laid to  prepare  the  statute  book  for  the  UK’s  withdrawal  from  the  EU.  To  date,  the government  has  laid  over  600  statutory  instruments  and  all  the  statutory  instruments laid  or  made  to  date  can  be  found  on  legislation.gov.uk.  The  devolved  authorities  also have  a  corresponding  power  in  Part  1  of  Schedule  2  to  the  EU  (Withdrawal)  Act  2018 to  make  corrections  in  time  for  exit  day  to  ensure  a  functioning  statute  book  where these  fall  within  areas  of  devolved  competence.  The  UK  Government  will  not  normally use  the  power  to  amend  domestic  legislation  in  areas  of  devolved  competence  without the  agreement  of  the  relevant  devolved  administration.

288.As  a  result  of  the  implementation  period,  the  Bill  will  amend  the  EU  (Withdrawal)  Act 2018  so  that  EU  law  will  not  be  retained  and  domesticated  on  the  UK  statute  book  until the  end  of  the  implementation  period.  For  this  reason,  the  Bill  needs  to  also  amend section  8  of  the  EU  (Withdrawal)  Act  2018  so  that  the  power  can  be  used  to  amend deficiencies  arising  in  retained  EU  law  as  at  the  end  of  the  implementation  period.

289.In  addition,  so  that  the  section  8  power  can  correct  all  deficiencies  arising  from  the  end of  the  implementation  period,  the  Bill  inserts  an  additional  deficiency  into  the  list  of deficiencies  in  section  8(2).  The  reason  for  this  is  that  the  snapshot  at  the  end  of  the implementation  period  which  will  form  the  basis  for  retained  EU  law  will  operate  on the  UK  statute  book  as  it  stands  at  that  time,  complete  with  the  effect  of  sections  2  to  6   or  Schedule  1  of  the  amended  EU  (Withdrawal)  Act  2018,  including  the  glosses  which   apply  to  EU-­‐‑derived  domestic  legislation  during  the  implementation  period  due  to   clause  2.  The  section  8  power  will  therefore  need  to  be  capable  of  correcting   deficiencies  arising  from  the  saving  of  EU  law,  including  the  application  of  the  glosses   at  the  end  of  the  implementation  period.  For  example,  this  power  may  be  needed   where  an  existing  deficiencies  regulation  already  corrects  deficiencies  in  a  piece  of  EU-­‐‑ derived  domestic  legislation  and  the  Bill  defers  this  statutory  instrument  from  coming   into  force  until  the  end  of  the  implementation  period.  It  may  then  be  necessary  to   amend  the  statutory  instrument  further,  to  correct  deficiencies  in  that  EU-­‐‑derived   domestic  legislation  arising  from  the  saving  of  EU  law  and  application  of  the  glosses,   rather  than  just  the  deficiencies  arising  from  the  end  of  EU  law  applying  in  the  UK.

290.This  clause  also  makes  a  number  of  technical  changes  to  the  section  8  power  to  allow  it to  work  on  deficiencies  arising  at  the  end  of  the  implementation  period.  For  example, it  amends  references  to  ‘exit  day’  so  that  they  refer  to  ‘IP  completion  day’  (as  defined at  clause  37(1))  instead  or  amends  existing  deficiencies  in  section  8(2)  so  that  they  catch deficiencies  arising  from  Part  4  of  the  Withdrawal  Agreement.  Further,  the  restriction in  section  8(7)(e)  on  the  power  being  used  to  implement  the  Withdrawal  Agreement  is removed  so  that  deficiencies  regulations  can  take  account  of  the  Withdrawal Agreement.

291.Part  1  of  Schedule  2  to  the  EU  (Withdrawal)  Act  2018  confers  a  corresponding  power to  the  section  8(1)  power  on  the  devolved  authorities,  and  on  a  Minister  of  the  Crown acting  jointly  with  a  devolved  authority.  Paragraph  1(3)  of  Schedule  2  provides  that section  8(2)  to  (9)  apply  for  the  purposes  of  the  powers  conferred  by  Part  1  of  Schedule 2,  as  they  apply  for  the  purposes  of  section  8(1).  As  a  result,  section  8(2)  to  (9)  as amended  by  this  clause  will  apply  for  the  purposes  of  Part  1  of  Schedule  2.

292.In  addition,  as  a  result  of  the  powers  being  available  during  the  implementation  period a  number  of  technical  amendments  are  made  by  clause  27(7)  to  references  in  Part  1  of Schedule  2  to  the  EU  (Withdrawal)  Act  2018.  These  amendments  update  references  to exit  day  to  IP  completion  day.
Justification  for  power

293.The  amendments  to  the  deficiencies  power  are  required  so  that  it  can  be  used  to correct  deficiencies  in  retained  EU  law  resulting  from  the  implementation  period  that may  render  the  law  inoperable.

294.These  amendments  are  necessary  to  allow  the  power  to  function  in  the  revised  context of  the  implementation  period.  It  was  not  possible  to  draft  the  power  in  this  manner when  the  EU  (Withdrawal)  Act  2018  was  passed,  because  that  Act  was  drafted  without prejudice  to  the  outcome  of  the  negotiations,  and  so  could  not  take  into  account  the prospect  of  an  implementation  period.

Justification  for  procedure

295.This  clause  is  not  a  new  power  as  it  amends  the  power  in  section  8(1)  of  the  EU (Withdrawal)  Act  2018  to  include  deficiencies  arising  as  a  result  of  the  implementation period.  Regulations  made  under  it  will  continue  to  be  subject  to  the  procedure  which Parliament  provided  for  in  passing  the  EU  (Withdrawal)  Act  2018,  detailed  below.

296.Schedule  7,  Part  1,  paragraph  1  of  that  Act  provides  that  the  draft  affirmative procedure  must  be  used  if  an  instrument  made  under  section  8(1)  does  one  or  more  of the  things  listed  in  sub-­‐‑paragraph  (2): a. transfers  an  EU  legislative  function  (i.e.  a  power  to  make  delegated  or implementing  acts)  to  a  UK  body; b. relates  to  fees  of  a  public  authority; c. creates  or  widens  the  scope  of  a  criminal  offence  (although  the  power  cannot  be used  to  create  certain  criminal  offences);  or d. creates  or  amends  a  power  to  legislate.

297.Schedule  7,  Part  1,  paragraph  1  also  provides  that  the  equivalent  procedure  to  the  draft affirmative  procedure  in  the  Scottish  Parliament,  National  Assembly  for  Wales  and Northern  Ireland  Assembly,  must  be  used  in  respect  of  an  instrument  made  under  Part 1  of  Schedule  2  which  does  one  of  more  of  the  things  listed  in  sub-­‐‑paragraph  (2).  In addition,  paragraph  2  of  Schedule  7  to  that  Act  establishes  the  applicable  procedures  in respect  of  regulations  made  under  Part  1  of  Schedule  2  of  a  Minister  of  the  Crown acting  jointly  with  a  devolved  authority.

298.Schedule  7,  Part  1,  paragraph  3  of  that  Act  also  requires,  before  instruments  under section  8(1)  being  proposed  for  the  negative  procedure  may  be  made,  that  the  Minister lays  a  draft  of  the  instrument  before  both  Houses  of  Parliament,  along  with  a memorandum  explaining  the  choice  of  procedure.  This  committee  has  10  sitting  days (beginning  on  the  first  day  both  Houses  are  sitting,  and  ending  on,  where  Commons sitting  days  are  different  to  Lords  sitting  days,  whichever  period  ends  later)  to  make  a recommendation  as  to  the  appropriate  procedure  for  the  instrument.  After  receiving the  recommendation,  or  after  10  sitting  days  without  a  recommendation,  a  Minister may  either  proceed  with  making  a  negative  instrument,  or  proceed  with  an  affirmative instrument  instead.  In  either  circumstance,  the  Minister  need  not  proceed immediately,  but  may  proceed  with  the  instrument  at  a  later  date.  If  the  Minister disagrees  with  a  recommendation  of  a  committee  for  the  affirmative  procedure,  they   will  be  required  to  make  a  statement  in  writing  explaining  why  they  disagree  before   they  can  proceed  with  the  negative  procedure.  Schedule  7,  Part  1,  paragraph  4  requires   a  similar  process  in  the  National  Assembly  for  Wales  in  respect  of  regulations  of  Welsh   Ministers.

299.Schedule  7,  Part  1,  paragraph  5  allows  for  the  made  affirmative  procedure  to  be  used instead  of  the  draft  affirmative,  for  regulations  under  section  8  made  by  a  minister  of the  crown  in  urgent  cases.  Sub-­‐‑paragraph  (8)  enables  Ministers  to  make  negative regulations  without  going  through  the  procedure  at  paragraph  3  in  urgent  cases  (in cases  which  do  not  trigger  the  affirmative  procedure).  Schedule  7  Part  1  paragraph  6 makes  equivalent  provision  for  regulations  made  by  the  devolved  authorities  under Part  1  of  Schedule  2  in  urgent  cases.

Paragraph  1(3)  and  (5)  of  Part  1,

 

Schedule  6:  powers  to  make  exceptions   from  and  add  powers  to  the  general  rule  delaying  exit  day  provisions  in   EU  Exit

SIs
Power  conferred  on:  A  Minister  of  the  Crown,  a  devolved  authority  or  a  Minister  of  the   Crown  acting  jointly  with  a  devolved  authority
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  No
Parliamentary  Procedure:  No  Procedure  before  exit  day  and  negative  procedure  after  exit  day

Context  and  purpose

300.The  EU  (Withdrawal)  Act  2018  contains  powers  which  aim  to  prepare  the  UK  statute book  for  withdrawal  from  the  EU.  For  example,  under  section  8(1)  of  that  Act  a Minister  of  the  Crown  can  make  regulations  to  correct  deficiencies  in  retained  EU  law. Part  1  of  Schedule  2  to  that  Act  also  makes  provision  for  the  devolved  authorities acting  alone  and  the  devolved  authorities  acting  jointly  with  a  Minister  of  the  Crown to  make  regulations  to  correct  deficiencies  in  retained  EU  law.

301.Since  the  passage  of  this  Act,  the  UK  Government  has  been  making  regulations  to ensure  a  functioning  statute  book  on  exit  day,  without  prejudice  to  the  outcome  of negotiations.  Many  of  these  regulations  would  therefore  be  unnecessary  and unworkable  if  they  came  into  force  during  the  implementation  period.  For  example, deficiencies  regulations  might  transfer  functions  from  an  EU  to  a  UK  authority  or remove  redundant  provisions,  such  as  requirements  on  the  UK  to  make  reports  to  the European  Commission,  to  reflect  that  the  UK  no  longer  has  ongoing  arrangements with  the  EU  and  may  therefore  put  the  UK  in  breach  of  its  obligations  under  Part  4  of the  Withdrawal  Agreement  which  continue  those  arrangements.

302.As  the  Bill  ensures  that  EU  law  will  continue  to  apply  in  the  UK  for  the  duration  of  the implementation  period,  regulations  made  under  powers  in  the  EU  (Withdrawal)  Act 2018  will  mostly  not  be  required  for  this  period.  The  Bill  will  therefore  generally  defer these  regulations  from  coming  into  force  on  exit  day  to  coming  into  force  on  IP completion  day.

303.The  Bill  accomplishes  this  by  directing,  in  Paragraph  1(1)  of  Schedule  6,  that  where regulations,  or  any  part  of  them,  are  made  under  specified  powers  and  are  to  come into  force  immediately  before  exit  day,  on  exit  day  or  after  exit  day  and  by  reference  to exit  day  (such  as  ‘three  months  after  exit  day’),  this  is  to  be  read  instead  as  providing for  those  regulations  to  come  into  force  immediately  before  IP  completion  day,  on  IP completion  day  or  after  IP  completion  day  and  by  reference  to  IP  completion  day  (such as  ‘three  months  after  IP  completion  day’)  (the  ‘mass  deferral’).

304.The  key  powers  in  the  EU  (Withdrawal)  Act  2018  under  which  these  regulations  will be  made  have  been  specified  in  paragraph  1(1)(a)  of  Schedule  6.  However,  in  some cases,  Ministers  or  a  devolved  authority  will  make  EU  Exit  statutory  instruments under  powers  in  other  Acts  (or  possibly  under  other  powers  in  the  EU  (Withdrawal) Act  2018)  which  aim  to  prepare  the  statute  book  for  exit  day.  As  with  the  deficiencies regulations  made  under  section  8(1)  of  the  EU  (Withdrawal)  Act  2018,  and  deficiencies regulations  made  under  Part  1  of  Schedule  2  to  that  Act,  their  coming  into  force  during the  implementation  period  would  likely  render  the  law  confusing  or  potentially  breach our  international  obligations  under  the  Withdrawal  Agreement.

305.The  Bill  will  therefore  provide  a  power  for  the  appropriate  authority  to  specify,  by regulations,  other  powers  under  which  statutory  instruments  will  be  made  to  come into  force  immediately  before,  on  or  after  exit  day,  which  should  be  deferred  to  come into  force  instead  immediately  before,  on  or  after  IP  completion  day.  Appropriate authority  is  defined  by  paragraph  1(8)  of  Schedule  6  as  a  Minister  of  the  Crown,  a devolved  authority  or  a  Minister  of  the  Crown  acting  jointly  with  a  devolved authority.

306.Paragraph  2  provides  for  the  exercise  of  this  power  by  the  devolved  authorities  acting alone.  The  devolved  authorities  will  be  able  to  specify  additional  powers  under  which statutory  instruments  will  be  made  to  come  into  force  immediately  before,  on  or  after exit  day,  which  should  be  deferred  to  come  into  force  instead  immediately  before,  on or  after  IP  completion  day.  They  will  be  able  to  do  so  where  those  powers  permit  the devolved  authority  acting  alone  to  make  subordinate  legislation,  or  permit  another person  to  make  the  subordinate  legislation  where  the  power  would  also  have permitted  the  devolved  authority,  acting  alone,  to  have  made  that  subordinate legislation.  So  far  as  applicable  to  the  making  of  subordinate  legislation  under  the powers  to  be  specified,  in  order  to  produce  the  same  result  as  produced  by  specifying the  power,  any  requirement  to  consult  the  UK  Government  applicable  under  the powers  to  be  specified  will  also  apply  for  the  purposes  of  the  devolved  authority acting  alone  specifying  the  power.

307.In  a  small  number  of  cases,  provisions  in  EU  exit  statutory  instruments  may  be required  to  be  in  force  for  the  implementation  period.  Further,  as  EU  exit  statutory instruments  will  continue  to  be  made  during  the  passage  of  the  Bill  in  order  to  prepare the  statute  book  for  exit  day,  it  may  not  be  possible  to  finalise  any  exceptions  needed for  exit  day  until  close  to  exit  day.  Other  exceptions  may  come  to  light  during  the implementation  period.  For  example,  it  may  be  appropriate  to  bring  a  provision  into force  before  IP  completion  day  to  allow  for  preparatory  steps  to  be  taken  in  advance. The  appropriate  authority  will,  therefore,  have  a  power  to  make  exceptions  to  the  mass deferral.  This  is  done  in  paragraph  1(5)  of  Schedule  6  which  enables  regulations  to  be made  that  make  different  provision  for  particular  cases  from  the  mass  deferral  or provide  for  the  mass  deferral  to  not  apply.

308.Paragraph  3  provides  for  the  exercise  of  this  power  by  a  devolved  authority  acting alone.  As  a  result,  a  devolved  authority  can,  acting  alone,  only  provide  for  a  provision in  subordinate  legislation  to  be  excepted  from  the  mass  deferral,  so  far  as  the  result  of that  exception  is  a  result  which  they  could  have  produced  acting  alone  under  the power  which  the  subordinate  legislation  in  question  was  made  by.  Paragraph  3  also provides  that  in  certain  cases  the  consent  of  a  Minister  of  the  Crown  is  required  where a  devolved  authority  is  acting  alone,  or  that  joint  procedure  is  required.  In  all  other cases,  consultation  with  a  Minister  of  the  Crown  is  required  for  a  devolved  authority acting  alone  to  make  an  exception  to  the  mass  deferral,  and  therefore,  bring  into  force provisions  prior  to  IP  completion  day.

Justification  for  powers

309.Government  Departments  and  the  devolved  administrations  have  reviewed  statutory instruments  made  with  a  coming  into  force  date  of  exit  day  to  assess  whether  they  will be  required  during  the  implementation  period.

310.A  number  of  powers  have  been  identified  under  which  EU  exit  statutory  instruments are  being  made  before  exit  day  and  should  be  deferred  until  the  end  of  the implementation  period.  However,  as  these  instruments  may  still  be  being  made  up until  exit  day,  the  full  list  of  powers  cannot  be  completely  confirmed  until  close  to  exit day.  As  such,  the  Bill  takes  a  power  for  the  appropriate  authority  to  specify  additional powers  once  the  full  list  of  powers  can  be  confirmed.

311.The  Bill  will  also  need  to  confer  a  power  on  the  appropriate  authority  to  make exceptions  to  the  mass  deferral.  This  is  necessary  to  allow  time  for  the  UK  Government and  the  devolved  administrations  to  finalise  any  exceptions  which  might  be  needed for  exit  day.  Further,  in  the  event  that  departments  and  the  devolved  administrations continue  to  make  secondary  legislation  for  exit  day,  it  is  possible  that  a  need  for provisions  to  be  exempted  will  only  be  identified  close  to  exit  day.  Were  this  to  occur,   it  would  be  necessary  to  exempt  such  secondary  legislation  from  the  deferral,  and  a   power  to  do  so  is  therefore  necessary.  It  may  also  become  apparent  during  the   implementation  period  that  a  different  coming  into  force  date  is  needed.  It  is  also   possible  to  expressly  disapply  the  mass  deferral  in  the  subordinate  legislation  itself,   under  paragraph  1(2)  of  Schedule  .  However,  this  will  only  be  possible  when  the  need   for  the  exception  is  known  at  the  time  of  making  the  instrument.

Justification  for  procedure

312.For  the  reasons  given  above,  the  appropriate  authority  may  need  to  exercise  both powers  very  close  to  and  for  exit  day.

313.As  such,  there  is  no  procedure  in  the  UK  Parliament  or  the  devolved  legislatures  for the  exercise  of  these  powers  to  make  the  technical  provision  needed  in  time  for  exit day,  so  that  we  can  ensure  a  clear  and  functioning  statute  book  on  exit  day.
314.After  exit  day,  any  changes  will  still  be  technical  and  minor,  but  there  will  be  more time,  as  the  urgency  of  exempting  or  preventing  statutory  instruments  from  coming into  force  on  exit  day  will  have  passed.  Any  subsequent  uses  of  the  powers  after  exit day  will  therefore  be  subject  to  the  negative  procedure.

6.Other  powers  in  the  Bill/amendments  to  powers  in  the  European  Union  (Withdrawal)  Act

 

 

Paragraph  4(2)  of  Schedule  4:  power  to  amend  table  referred  to  in  the   definition  of  ‘workers’  retained  EU  rights’
Power  conferred  on:  Minister  of  the  Crown
Power  exercisable  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes
Parliamentary  procedure:  Draft  affirmative

Context  and  purpose

315.Clause  34  (Protection  for  workers’  rights)  makes  provision  for  a  new  Schedule  5A  to  be inserted  into  the  EU  (Withdrawal)  Act  2018.  Schedule  4  of  the  Bill  contains  the provision  to  be  inserted.  One  of  the  matters  provided  for  in  this  new  schedule  requires a  Minister  in  charge  of  a  Bill  to  make  a  statement  of  non-­‐‑regression,  which  requires  an assessment  as  to  whether  or  not  the  Bill  results  in  a  failure  to  confer  a  ‘worker’s retained  EU  right’.  The  definition  of  ‘workers’  retained  EU  rights’  is  provided  for  at paragraph  3(1)  of  Part  3  of  new  Schedule  5A  (Interpretation)  and  includes  reference  to obligations  that  the  UK  was  obliged  to  confer  by  virtue  of  certain  EU  directives  at  the end  of  the  implementation  period.  That  list  of  directives  is  set  out  in  a  table  at paragraph  4(1),  Part  3  of  new  Schedule  5A.  The  power  at  paragraph  4(2)  of  the  new Schedule  enables  the  Secretary  of  State,  by  regulations,  to  add  to/amend  that  list  in consequence  of  changes  to  EU  legislation  before  the  end  of  the  implementation  period.

Justification  for  power

316.The  Government  appreciates  that  this  is  a  so  called  ‘Henry  VIII’  power;  but  believes that  it  is  important  to  ensure  that,  if  there  is  new  EU  legislation  that  has  a  transposition deadline  within  the  implementation  period,  this  can  be  added  to  the  relevant  list  of  EU legislation  –  so  that  it  is  included  in  the  non-­‐‑regression  assessment.  The  power  can only  be  used  to  amend  this  list,  to  add  new  pieces  of  EU  legislation  which  are  made before  the  end  of  the  IP,  or  remove  those  which  are  repealed  or  superseded  and  cannot be  used  to  amend  other  primary  legislation.  The  power  is  time-­‐‑limited  and  sunsets  12 months  after  the  end  of  the  implementation  period.  Paragraph  58(6)  of  Schedule  6 amends  paragraph  40  of  Schedule  8  of  the  EU  (Withdrawal)  Act  2018  to  ensure  that  the existing  provision  there  (which  confirms  that  the  prohibition  on  making  regulations after  the  sunset  does  not  affect  the  continuation  in  force  of  regulations  made  prior  to   the  sunset)  applies  to  paragraph  4(2)  of  new  Schedule  5A.

Justification  for  procedure

317.Regulations  made  under  this  section  are  subject  to  the  affirmative  resolution procedure.  Despite  the  very  limited  circumstances  in  which  it  may  be  used,  and  the fact  that  the  power  is  time-­‐‑limited  (it  sunsets  12  months  after  the  end  of  the implementation  period),  the  Government  is  of  the  view  that  the  affirmative  procedure is  appropriate  given  the  general  approach  taken  to  the  scrutiny  of  so  called  ‘Henry VIII’  powers  in  the  Bill.

Clause  37(4):  power  to  amend  ‘IP  completion  day’

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes

Parliamentary  Procedure:  negative  procedure

Context  and  purpose

318.IP  completion  day  is  defined  as  11.00  p.m.  on  31  December  2020.  The  end  of  the implementation  period  is  linked  to  the  end  of  the  current  EU  multiannual  financial framework  with  11.00  p.m.  on  31  December  2020  UK  time  corresponding  to  midnight on  31  December  2020  Brussels  time.

319.Article  132  of  the  Withdrawal  Agreement  provides  for  a  single  extension  by  a  period  of up  to  two  years  to  the  duration  of  the  implementation  period  up  to  31  December  2022, with  any  decision  to  extend  the  implementation  period  to  be  made  by  the  Joint Committee  before  1  July  2020.

320.The  EU  is  also  currently  consulting  on  the  functioning  of  EU  summer-­‐‑time arrangements  as  provided  for  by  Directive  2000/84/EC  which  currently  requires  that the  clocks  of  EU  Member  States  are  changed  twice  per  year  but  with  a  proposal  to either  keep  current  summer-­‐‑time  arrangements  or  discontinue  the  current  bi-­‐‑annual time  changes  for  all  Member  States  and  prohibit  periodic  switches.  This  would  not affect  the  choice  of  time  zone,  and  it  would  ultimately  remain  each  Member  State’ʹs decision  whether  to  go  for  permanent  summer  or  wintertime  (or  a  different  time).

Justification  for  power

321.This  is  a  limited  (albeit  significant)  power  which  allows  a  Minister  of  the  Crown  to make  regulations  to  amend  the  definition  of  IP  completion  day  in  this  Bill  to  allow  for an  extension  to  the  implementation  period  as  a  result  of  a  decision  of  the  Joint Committee  to  provide  for  a  single  extension  of  the  implementation  period.
322.The  power  also  allows  a  Minister  of  the  Crown  to  make  regulations  to  amend  the definition  of  ‘IP  completion  day’  and  the  references  to  ‘IP  completion  day’  in  the  Act  as a  result  of  a  change  to  EU  summer-­‐‑time  arrangements  during  the  implementation period  so  as  to  ensure  that  the  definition  of  IP  completion  day  in  the  UK  is  the  same  as   in  Brussels  time.

Justification  for  Procedure

323.Any  extension  of  the  implementation  period  will  be  as  a  result  of  a  decision  by  the Joint  Committee.  Any  extension  of  the  implementation  period  would  be  a  sovereign decision  for  the  UK.  No  extension  could  be  agreed  by  the  UK  without  the  House  of Commons  having  passed  a  motion  to  approve  the  proposed  extension  and  the  House of  Lords  having  had  the  opportunity  to  debate  the  proposed  extension  as  provided  for by  clause  30.  It  is  therefore  appropriate  for  regulations  amending  the  definition  of  ‘IP completion  day’  to  be  subject  to  the  negative  procedure  as  the  amendment  would merely  reflect  what  had  been  agreed  under  international  law  and  what  had  already been  approved  by  the  House  of  Commons.

324.The  negative  procedure  would  also  apply  to  regulations  made  under  this  power  to amend  IP  completion  day  and  references  to  IP  completion  day  as  a  result  of  technical changes  to  EU  summer-­‐‑time  arrangements.

Clause  39(1)  and  (5):  powers  to  make  consequential  provision  and   transitional,  transitory  and  savings  provision

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes

Parliamentary  Procedure:  Negative  procedure  for  the  consequential  power;  no  procedure  in   the  case  of  the  transitional  etc  power

325.This  clause  contains  two  powers:  one  to  make  such  consequential  provision  and  the other  to  make  transitional,  transitory  or  saving  provision  as  is  appropriate  in connection  with  the  coming  into  force  of  any  of  the  provisions  of  the  Bill.

326.Subsection  (1)  provides  that  a  minister  of  the  Crown  can  make  regulations  as  she considers  ‘appropriate’  in  consequence  of  the  Act.  There  are  likely  to  be  a  range  of different  ways  in  which  consequential  issues  could  be  addressed.  Accordingly,  it  is  for the  Minister  to  determine  what  is  appropriate.

327.Subsection  (2)  permits  regulations  made  under  subsection  (1)  to  be  exercised  by, among  other  things,  modifying  any  provision  made  by  or  under  an  enactment. ‘Enactment’  is  defined  at  clause  37(1)  and  includes  primary  legislation.  The  power  is therefore  a  so  called  ‘Henry  VIII’  power.

328.Subsection  (3)  provides  that  enactment  for  the  purposes  of  subsection  (2)  does  not include  primary  legislation  passed  or  made  after  the  end  of  the  parliamentary  session in  which  this  Bill  becomes  an  Act.

329.Subsection  (4)  directs  the  reader  to  Parts  1  and  2  of  Schedule  6  which  provide  for general  and  specific  consequential  provision  made  by  the  Bill.

330.Subsection  (5)  provides  a  Minister  of  the  Crown  with  the  power  to  make,  by regulations,  such  transitional,  transitory  or  saving  provision  as  she  considers appropriate  in  connection  with  the  coming  into  force  of  any  provision  of  the  Bill.  As for  subsection  (1),  it  is  for  the  Minister  to  determine  what  is  appropriate.

331.Subsection  (6)  directs  the  reader  to  Part  3  of  Schedule  6  which  contains  specific transitional  and  savings  provisions.

Justification  for  powers

332.This  Bill  builds  on  changes  to  the  legal  framework  of  the  UK  that  began  with  the  EU (Withdrawal)  Act  2018.

333.As  a  result  of  changes  required  to  the  statute  book  required  to  give  effect  to  the Agreements,  there  will  inevitably  be  consequential  amendments  required  in  order  to ensure  that  the  statute  book  is  compatible  with  the  obligations  the  UK  has  signed  up to.  Provision  which  may  be  made  by  regulations  includes  that  which  is  in  consequence of  particular  provision  or  a  number  of  provisions  or  the  Bill  as  a  whole.  Where  it  has been  possible  to  identify  specific  consequential  amendments  required,  these  have  been made  by  Part  2  of  Schedule  6  of  the  Bill.

334.The  consequential  power  is  limited  to  making  amendments  consequential  to  the contents  of  the  Bill  itself  and  not  for  any  other  purpose.  Although  the  consequential power  may  be  exercised  to  amend  primary  legislation,  the  effect  of  subsection  (3)  is that  it  cannot  be  used  to  modify  primary  legislation  passed  or  made  after  IP completion  day.  The  so  called  ‘Henry  VIII’  aspect  of  this  power  is  therefore  time-­‐‑ limited  and  any  amendments  to  primary  legislation  which  is  consequential  on  the contents  of  the  Bill  cannot  be  made  beyond  the  end  of  the  implementation  period.  This ensures  that  any  primary  legislation  currently  before  Parliament  for  example  and which  cannot  be  expected  to  have  taken  into  account  the  consequences  of  this  Bill when  it  was  drafted  and  made,  can  be  amended.  Beyond  the  end  of  the implementation  period  however,  primary  legislation  will  need  to  take  into  account that  matters  provided  for  by  this  Bill  as  the  consequential  power  will  no  longer  be available.

335.The  transitional,  transitory  or  savings  power  is  a  standard  power  to  make  transitional, transitory  or  saving  provision  in  connection  with  the  bringing  into  force  of  provisions in  the  Bill.  This  power  therefore  provides  for  further  transitional,  transitory  or  savings provisions  to  be  made  over  and  above  those  already  set  out  at  Part  3  of  Schedule  6  to the  Bill.  The  purpose  of  such  powers  is  to  ensure  a  smooth  transition  between  existing law  and  the  law  as  it  will  look  after  the  implementation  period.
336.As  with  the  power  to  make  consequential  provision,  any  such  power  will  be  construed strictly.
337.Clause  39  is  substantively  drafted  in  identical  terms  as  the  consequential  and transitional  powers  passed  by  Parliament  in  the  EU  (Withdrawal)  Act  2018.

Justification  for  procedure

338.The  consequential  power  is  subject  to  the  negative  procedure.  It  is  nevertheless considered  that  such  an  approach  is  justified  -­‐‑  the  consequential  power,  like consequential  powers  in  other  primary  legislation,  will  be  construed  strictly  by  the courts  and,  in  effect,  to  making  the  minimum  amendments  necessary  to  procedure,  or machinery  to  reflect  the  provisions  of  the  Act  or  instrument  concerned.  In  particular there  will  be  a  presumption  against  substantive  changes  that  interfere  with  rights  or liabilities20.

339.The  transitional  power  is  subject  to  no  procedure.  There  is  substantial  precedent  for this  type  of  power  to  attract  no  procedure,  as  most  recently  seen  in  the  Taxation (Cross-­‐‑border  Trade)  Act  2018.
20  Ye  Olde  Cheshire  Cheese  Ltd  v  Daily  Telegraph  Plc  [1988]  1  W.L.R.  1173  

Paragraphs  5  and  69  of  Schedule  6:

 operation  of  the  powers  to  make   consequential  provision  and  transitional,  transitory  and  savings   provision  in  the  EU  (Withdrawal)  Act  2018

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  Yes,  but  only  in  respect  of  section  23(1)  -­‐‑  the  consequential  power
Parliamentary  Procedure:  Existing  procedures  which  apply  to  section  23(1)  and  (6)  of  the  EU   (Withdrawal)  Act  2018

Context  and  purpose

340.Paragraph  5(1)  of  Schedule  6  clarifies  that  the  consequential  power  in  the  EU (Withdrawal)  Act  2018  is  capable  of  making  regulations  in  consequence  of  the  Act  as amended  by  or  under  the  Bill.  The  Bill  will  also  amend  section  23(3)  so  that  the consequential  power  can  amend  primary  legislation  until  the  end  of  the implementation  period.  Further,  the  power  will  be  sunset  ten  years  from  IP  completion day.

341.Paragraph  69(1)  of  Schedule  6  clarifies  that  the  transitional,  transitory  and  saving power  in  section  23(6)  the  EU  (Withdrawal)  Act  2018  is  capable  of  making  regulations in  connection  with  the  coming  into  force  of  any  provision  of  the  Act  as  amended  by  or under  the  Bill.  The  Bill  will  also  amend  section  23(6)  so  that  the  power  can  be  used  in connection  with  the  coming  into  force  of  any  provision  including  its  operation  in connection  with  IP  completion  day. Justification  for  power

342.The  clarification  in  Paragraph  5(1)  is  required  so  that  the  consequential  power  in section  23(1)  the  EU  (Withdrawal)  Act  2018  can  be  used  as  intended  in  the  event  of  an implementation  period.  This  enables  the  power  to  be  used  to  make  regulations  in consequence  of  the  Act  as  it  will  stand  following  the  passage  of  this  Bill  and  the modifications  this  will  make  to  it.  The  further  amendments  ensure  that  the  power  can be  exercised  in  light  of  the  implementation  period.

343.The  clarification  in  paragraph  69(1)  is  required  so  that  the  consequential  power  under section  23(6)  of  the  EU  (Withdrawal)  Act  2018  can  be  used  as  intended  in  the  event  of
an  implementation  period.  This  enables  the  power  to  be  used  to  make  regulations  in   connection  with  the  coming  into  force  of  any  provision  of  the  Act  as  it  will  stand   following  the  passage  of  this  Bill  and  the  modifications  this  will  make  to  it.  The  further   amendment  ensures  that  the  power  can  be  exercised  in  light  of  the  implementation   period.

Justification  for  procedure

344.These  are  technical  extensions  of  the  powers  to  make  consequential  and  transitional, transitory  or  saving  provision  under  sections  23(1)  and  23(6)  of  the  EU  (Withdrawal) Act  2018.  Regulations  made  under  these  powers  will  continue  to  be  laid  under  the procedures  set  out  in  paragraphs  15,  16  and  17  of  Schedule  7  of  that  Act.

Clause  40(7):  power  to  make  commencement  provisions

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  No
Parliamentary  Procedure:  no  procedure

 

Context  and  purpose

345.This  clause  contains  a  standard  power  for  a  Minister  of  the  Crown  to  bring  provisions of  the  Bill  into  force  by  commencement  regulations.  Clause  40(6)  lists  the  provisions that  will  come  into  force  on  the  day  on  which  the  Bill  is  passed.  Not  all  of  the provisions  in  the  Bill  will  need  to  be  in  force  immediately  on  the  Bill  being  passed  and for  this  reason,  a  power  is  taken  to  enable  a  Minister  of  the  Crown  to  appoint,  by regulations,  a  day  (or  different  days)  for  the  coming  into  force  of  the  remainder  of  the provisions  contained  in  the  Bill.

Justification  for  power

346.Some  parts  of  the  Bill  will  need  to  be  commenced  earlier  than  others.  For  that  reason, where  commencement  is  not  already  expressly  provided  for  at  clause  40(6),  this  power will  enable  a  Minister  of  the  Crown  to  make  regulations  to  commence  particular provisions  for  when  they  are  needed.

Justification  for  procedure

347.As  is  usual  with  commencement  powers,  regulations  providing  for  the  coming  into force  of  the  remainder  of  the  provisions  of  the  Bill  are  not  subject  to  any  parliamentary procedure.  Parliament  has  approved  the  principle  of  the  provisions  to  be  commenced by  enacting  them;  commencement  by  regulations  enables  the  provisions  to  be  brought into  force  at  the  appropriate  time.

Clause  28:  amendment  to  powers  in  connection  with  Fees  and  Charges

Power  conferred  on:  An  appropriate  authority  (as  defined  by  Schedule  5,  Part  1,  paragraph  2,   EU  (Withdrawal)  Act  2018)
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  No

Parliamentary  Procedure:  Negative  procedure  where  the  altering  of  a  fee  or  charge  is  to  reflect   changes  in  the  value  of  money,  otherwise  draft  affirmative  procedure  applies.

Context  and  purpose

348.The  EU  (Withdrawal)  Act  2018  contains  a  power  at  Part  1  of  Schedule  4  to  provide  for fees  or  charges  in  connection  with  functions  given  to  public  authorities  by  section  8  or section  9  of  that  Act.  This  enables  UK  ministers  and  devolved  authorities  to  create  fees and  charges  in  connection  with  functions  that  public  bodies  in  the  UK  take  on  in connection  with  EU  exit.  It  ensures  ministers  have  the  flexibility  to  ensure  the  burden of  specific  industry-­‐‑related  costs  does  not  fall  on  the  general  taxpayer.  It  should  be noted  that  this  could  include  the  creation  of  tax-­‐‑like  charges,  which  go  beyond recovering  the  direct  cost  of  the  provision  of  a  service  to  a  specific  firm  or  individual, including  to  allow  for  potential  cross-­‐‑subsidisation  or  to  cover  the  wider  functions  and running  costs  of  a  public  body,  or  to  lower  regulatory  costs  for  small  or  medium  sized enterprises.

349.This  clause  extends  this  fee  charging  power  by  amending  Schedule  4  of  the  EU (Withdrawal)  Act  2018  so  it  can  also  be  used  in  connection  with  functions  given  to public  authorities  by  new  sections  8B  and  8C  (and  the  corresponding  powers  for devolved  authorities  in  new  Part  1B  and  Part  1C  of  Schedule  2).

350.Extending  Schedule  4  Part  1  to  cover  these  new  powers,  means  that  they  can  also  be used  to  mitigate  the  burden  on  the  general  taxpayer  to  pick  up  the  cost  of  functions created  to  deal  with  the  implementation  of  the  Withdrawal  Agreement  and  EEA  EFTA Separation  Agreement  by  new  sections  8B  and  8C  (and  their  corresponding equivalents).  For  example,  it  is  anticipated  that  this  could  include  the  cost  of  renewing certain  intellectual  property  rights.  While  the  Withdrawal  Agreement  and  EEA  EFTA Separation  Agreement  set  out  that  existing  rights  holders  will  be  granted  equivalent UK  rights  at  no  charge,  once  these  have  expired  there  will  be  costs  associated  with their  renewal.  It  may  be  that  this  power  would  be  used  in  connection  with  those  costs.

351.Subsection  (c)  sets  out  that  the  time  limit  that  exists  for  making  certain  provisions under  this  power  will  not  apply  to  its  extended  role.  This  is  because  the  duties  to implement  the  Withdrawal  Agreement  and  EEA  EFTA  Separation  Agreement  on  OSIs are  not  strictly  time  limited  and  it  is  therefore  not  possible  to  define  the  end  point  of the  functions  created  in  connection  with  those  agreements.

352.The  power  as  set  out  in  Schedule  4  is  capable  of  being  used  to  confer  a  power  on  public authorities  to  create  their  own  fees  and  charges  schemes.  The  regulations  conferring such  a  power  on  a  public  authority  would  themselves  be  subject  to  Treasury  consent and  the  draft  affirmative  procedure.

353.In  addition,  for  the  UK  Government,  Treasury  consent  is  required  for  the  creation  of  a new  fee  or  charge,  further  ensuring  departments  justify  their  case.  This  constraint  does not  apply  to  the  devolved  authorities,  in  accordance  with  standard  practice  around financial  arrangements  for  devolution  (although  devolved  authorities  could  of  course impose  their  own  similar  constraints  administratively  to  mirror  the  requirement  for Treasury  consent).

Justification  for  power

354.This  power  is  designed  to  allow  flexibility  in  how  new  Government  functions  are funded.  It  enables  the  creation  and  modification  of  fees  or  other  charges  so  the  costs  of Government  services  do  not  have  to  always  fall  on  the  taxpayer.

355.The  power  is  designed  to  work  in  conjunction  with  functions  that  may  be  legislated  for by  regulations  under  new  sections  8B  and  C  (and  the  corresponding  powers  for devolved  authorities  in  new  Part  1B  and  1C  of  Schedule  1).  It  therefore  follows  that provision  for  creating  fees  and  charges  in  this  connection  be  made  via  a  regulation-­‐‑ making  power.

Justification  for  procedure

356.The  draft  affirmative  procedure  applies  to  the  current  exercise  of  the  power  in  the  UK Parliament  or  the  devolved  legislature,  depending  where  the  regulations  are  made, where  departments  provide  for  the  charging  of  new  fees.  This  procedure  would  be extended  to  the  new  functions  of  the  power.  The  Government  recognises  that  the decision  whether  or  not  to  charge  for  a  particular  function  is  a  policy  choice  with impact  on  industry  or  individuals  wishes  to  ensure  appropriate  scrutiny  of  the proposed  legislation  for  this  exercise  of  the  power  (unless  the  power  is  being  exercised only  to  reflect  changes  in  the  value  of  money  in  which  case,  the  negative  procedure will  apply  on  the  basis  that  the  power  is  being  used  only  to  update  in  line  with   inflation  rather  than  to  reflect  any  policy  change).

Paragraph  50,  Part  2  of  Schedule  6:  amendment  to  power  to  provide  for   judicial  notice

Power  conferred  on:  A  Minister  of  the  Crown
Power  exercised  by:  Regulations  made  by  Statutory  Instrument
Henry  VIII  power:  No
Parliamentary  Procedure:  Draft  affirmative  procedure

Context  and  purpose

357.The  EU  (Withdrawal)  Act  2018  contains  a  power  at  paragraph  4,  Part  2  of  Schedule  5 which  enables  Ministers  to  make  provision  on  judicial  notice  and  evidential  rules  on EU  law,  the  EEA  agreement,  and  retained  EU  law.  The  power  was  taken  to  ensure  that, despite  the  repeal  of  the  ECA,  provision  could  be  made  which  would  allow  the  courts to  continue  to  take  notice  of  aspects  of  EU  law  (such  as  the  EU  Treaties)  and  determine how  evidence  of  EU  instruments  may  be  given  in  domestic  courts.  As  was  explained  in the  first  Delegated  Powers  Memorandum21  to  the  then  EU  (Withdrawal)  Bill, notwithstanding  the  repeal  of  the  ECA,  provisions  on  judicial  notice  and  admissibility would  in  any  event  need  to  be  supplemented  to  take  into  account  the  final  details  of the  change  in  the  legal  landscape  following  the  UK’s  exit  from  the  EU.

358.The  Bill  amends  paragraph  4(5)  of  Part  2,  Schedule  2  to  broaden  the  meaning  of  ‘a relevant  matter’  for  the  purposes  of  paragraph  4(1)  so  as  to  include  ‘the  EEA  EFTA Separation  Agreement’,  ‘the  Swiss  Citizens’  Rights  Agreement’  and  ‘the  Withdrawal Agreement’  (paragraph  4(5)(ca)  to  (cc))  and  anything  which  is  specified  in  the regulations  and  which  relates  to  a  matter  mentioned  in  those  Agreements  (paragraph 4(5)(d)).

359.The  Bill  also  makes  a  consequential  change  at  paragraph  4(4)  so  as  to  ensure  that regulations  made  under  paragraph  4  cannot  modify  any  provision  contained  in primary  legislation  passed  or  made  after  IP  completion  day  (rather  than  after  the  end of  the  parliamentary  Session  in  which  the  EU  (Withdrawal)  Act  2018  was  passed).

Justification  for  amendments  to  the  power

21  Dated  13  July  2017.  

360.The  broadening  of  the  definition  of  ‘a  relevant  matter’  has  the  effect  that  regulations may  be  made  by  a  Minister  of  the  Crown  to  provide  for  the  admissibility  in  legal proceedings  of  the  EEA  EFTA  Separation  Agreement,  the  Swiss  Citizens’  Rights Agreement  and  the  Withdrawal  Agreement  or  anything  which  relates  to  it  (if  specified in  the  regulations).  This  is  in  addition  to  the  regulations  which  may  already  be  made under  this  power  to  provide  for  the  admissibility  in  any  legal  proceedings  of  retained EU  law,  EU  law  and  the  EEA  EFTA  Separation  Agreement  (or  anything  which  is specified  in  the  regulations  and  which  relates  to  them).

361.The  consequence  of  not  including  ‘the  EEA  EFTA  Separation  Agreement’,  ‘the  Swiss Citizens’  Rights  Agreement’  and  ‘the  Withdrawal  Agreement’  as  a  ‘relevant  matter’  for the  purpose  of  the  power  at  paragraph  4(1)  is  that  these  Agreements  will  need  to  be proved  by  evidence  before  a  court  of  law  in  accordance  with  the  general  rule  that  all matters  in  issue  or  relevant  to  legal  proceedings  must  be  proved  before  they  are admitted.  This  would  create  an  unnecessary  hurdle  for  those  seeking  to  rely  on matters  contained  in  these  agreements  before  a  court  or  tribunal.

362. The  amendment  to  paragraph  4(4)  to  ensure  that  regulations  made  under  paragraph  4 cannot  modify  any  provision  contained  in  primary  legislation  passed  or  made  after  IP completion  day  (rather  than  after  the  end  of  the  parliamentary  Session  in  which  the  EU (Withdrawal)  Act  2018  was  passed)  is  adopted  in  the  context  of  the  transition  period agreed  between  the  UK  and  EU  in  the  Withdrawal  Agreement.  Without  this amendment,  modifications  to  primary  legislation  required  as  a  consequence  of  the exercise  of  the  power  at  4(1)  could  only  be  made  up  to  the  end  of  the  parliamentary Session  in  which  the  Bill  was  passed  (autumn  of  2019)  despite  the  fact  that  this  has already  come  to  pass,  that  the  UK  will  continue  to  apply  EU  law  for  several  more months  whilst  it  is  in  the  implementation  period,  and  this  would  prevent  the  power being  exercised  for  its  intended  purpose.  As  any  regulations  made  under  this  power will  not  be  required  until  the  end  of  the  implementation  period,  it  is  sensible  to  avail the  relevant  Government  Departments  of  time  to  make  regulations  for  this  purpose  so that  they  may  be  ready  for  the  day  of  expiry  of  the  implementation  period.

Justification  for  the  procedure

363.The  power  contained  in  the  EU  (Withdrawal)  Act  2018  is  currently  subject  to  the  draft affirmative  procedure  on  the  basis  that  the  content  of  any  regulations  made  under  it may  be  of  particular  interest  to  Parliament.  On  the  basis  that  Parliament  has  already approved  the  procedure  in  connection  with  the  exercise  of  this  power,  the  Bill  does  not seek  to  amend  it.

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