Lord Oates:

The issue of the rule of law is at the heart of this. Having worked in a number of countries around the world, particularly in Africa, where despite the UK's reputation being somewhat mixed in some respects, our reputation for upholding the rule of law has been very high, my huge concern is that this could cause a problem. It is not just about Part 5. If we feel we can act like this, the whole question about trust and how we act in different areas arises. Clearly, trust has been undermined. I share the view of Lord Kerr that this is probably about brinkmanship and an attempt to force the negotiations. I am not sure if it is effective but time will tell.

As to the seriousness of the UK Government's position regarding an Australia-type deal as it calls it, that is, it means no deal at all, Michael Gove told us that it would be content with that. What is clear is that our industry, be it manufacturing, services, farming or a new and significant aspect of our economy, would not be content with it. I think it would be catastrophic. We are not Australia. We are not 10,500 miles from the EU and, as we know, geographic proximity is critical in trade flows. I hope and pray that it is not the UK Government's genuine view that an Australia-type no-deal outcome would be acceptable. I still have hope that in the remaining weeks, minds will be concentrated and there will be shifts on both sides because this is mutually beneficial to all of us. I certainly do not think it has been helped by Part 5 of this Bill.