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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> The Counsel General for Wales, R (On the Application Of) v The Secretary of State for Business, Energy and Industrial Strategy [2022] EWCA Civ 118 (09 February 2022) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2022/118.html Cite as: [2022] EWCA Civ 118 |
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ON APPEAL FROM The High Court of Justice Queen's Bench Division (Divisional Court)
Lord Justice Lewis and Mrs Justice Steyn
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE NICOLA DAVIES
and
LORD JUSTICE DINGEMANS
____________________
THE QUEEN on the application of THE COUNSEL GENERAL FOR WALES |
Claimant/Appellant |
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- and - |
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THE SECRETARY OF STATE FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY |
Defendant/Respondent |
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- and – |
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(1) THE LORD ADVOCATE (2) THE ATTORNEY GENERAL FOR NORTHERN IRELAND |
Interested Parties |
____________________
Sir James Eadie Q.C. and Christopher Knight (instructed by Treasury Solicitor) for the Respondent
Hearing date: 18 January 2022
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Crown Copyright ©
Lady Justice Nicola Davies :
The United Kingdom Internal Market Act 2020
"… to preserve the United Kingdom's (UK's) internal market as power previously exercised at European Union (EU) level return to the UK, providing continued certainty for people and businesses that they can work and trade freely across the whole of the UK."
Legislative Framework
" 8. Section 1 of GOWA provides for a parliament for Wales known as the Senedd Cymru. The Senedd is "a permanent part of the United Kingdom's constitutional arrangements" (see section A1 of GOWA).
9. The Senedd has power to make laws for Wales, as does the Parliament of the United Kingdom. Section 107 of GOWA provides, so far as material that:
"Acts of the Senedd
107(1) The Senedd may make laws, to be known as Acts of Senedd Cymru or Deddfau Senedd Cymru (referred to in this Act as "Acts of the Senedd").
(2) Proposed Acts of the Senedd are to be known as Bills; and a Bill becomes an Act of the Senedd when it has been passed by the Senedd and has received Royal Assent.
…..
(5) This Part does not affect the power of the Parliament of the United Kingdom to make laws for Wales.
(6) But it is recognised that the Parliament of the United Kingdom will not normally legislate with regard to devolved matters without the consent of the Senedd."
10. The extent of the legislative competence of the Senedd is defined by section 108A of GOWA which provides, so far as material, that:
"(1) An Act of the Senedd is not law so far as any provision of the Act is outside the Senedd's legislative competence.
(2) A provision is outside that competence so far as any of the following paragraphs apply—
(a) it extends otherwise than only to England and Wales;
(b) it applies otherwise than in relation to Wales or confers, imposes, modifies or removes (or gives power to confer, impose, modify or remove) functions exercisable otherwise than in relation to Wales;
(c) it relates to reserved matters (see Schedule 7A);
(d) it breaches any of the restrictions in Part 1 of Schedule 7B, having regard to any exception in Part 2 of that Schedule from those restrictions;
(e) it is incompatible with the Convention rights or in breach of the restriction in section 109A(1).
…
(6) The question whether a provision of an Act of the Senedd relates to a reserved matter is determined by reference to the purpose of the provision, having regard (among other things) to its effect in all the circumstances."
11. So far as the restriction in section 108A(2)(c) of GOWA is concerned, schedule 7A to GOWA sets out those matters that are reserved to the United Kingdom Parliament. The Senedd does not have competence to make laws in relation to those reserved matters. Part 1 of Schedule 7A sets out general reservations where the Senedd does not have legislative competence, such as certain matters to do with the constitution, the Civil Service or issues relating to courts and tribunals. Part 2 sets out specific reservations where certain matters are reserved to the United Kingdom Parliament but there are exceptions where the Senedd also has legislative competence. By way of example, in the area of consumer protection, the enforcement of certain consumer legislation and product labelling are both reserved matters but in each case there is an exception in relation to food and food products (see paragraphs 76 and 80 of Schedule 7A to GOWA).
12. So far as the restriction in section 108A(2)(d) is concerned, Schedule 7B provides that a provision of an Act of the Senedd cannot modify specified areas of law (such as private law) or specified enactments. "Modifications" include amendments, repeals and revocations (see section 158 of GOWA). The material paragraph is paragraph 5 which provides that:
"5(1) A provision of an Act of the Senedd cannot make modifications of, or confer power by subordinate legislation to make modifications of, any of the provisions listed in the table below:
Enactment Provisions protected from modification Government of Wales Act 1998 Section 144(7). Human Rights Act 1998 The whole Act Civil Contingencies Act 2004 The whole Act Energy Act 2008 Section 100 and regulations under that section The European Union (Withdrawal) Act 2008 The whole Act other than any excluded provision The United Kingdom Internal Market Act 2020 The whole Act
13. The reference to [UKIMA] was inserted in paragraph 5 by section 54(2) of [UKIMA].
14. The person in charge of a Bill must state, on or before the introduction of the Bill, that in his or her view the provisions of the Bill would be within the Senedd's legislative competence. The Presiding Officer of the Senedd must also decide whether in the view of that officer the provisions of the Bill would be within the Senedd's legislative competence and state that decision. See section 110 of GOWA.
15. There is provision for scrutiny of Bills by the Supreme Court before the giving of Royal Assent. Section 112(1) of GOWA provides that:
"The Counsel General or the Attorney General may refer the question whether a Bill, or any provision of a Bill, would be within the Senedd's legislative competence to the Supreme Court for decision."
[UKIMA]
16. Section 1 of [UKIMA] sets out the purpose of Part 1 of the Act which is to promote the continued functioning of the internal market for goods in the United Kingdom by establishing what are described as market access principles. These are the principles of mutual recognition of goods and non-discrimination in relation to goods. Section 1(3) of [UKIMA] provides that:
"Those principles have no direct legal effect except as provided by this Part."
17. Section 2 of [UKIMA] deals with the mutual recognition principle for goods. It provides, so far as material, that:
"(1) The mutual recognition principle for goods is the principle that goods which—
(a) have been produced in, or imported into, one part of the United Kingdom ("the originating part"), and
(b) can be sold there without contravening any relevant requirements that would apply to their sale,
should be able to be sold in any other part of the United Kingdom, free from any relevant requirements that would otherwise apply to the sale."
18. "Relevant requirements" are, broadly, statutory requirements, including those contained in Acts of the Senedd, adopted after [UKIMA] came into force, which prohibit the sale of goods and which fall within the mutual recognition principle. Such requirements will, broadly, fall within the scope of that principle if they relate to the characteristics, presentation, or production of the goods or certain other specified matters. A requirement will not fall within the principle if it relates to the manner of sale of goods (that is, the circumstances or manner in which the goods are sold such as where, when, by whom or to whom, or the price or terms on which it may be sold) unless, amongst other things, it appears to be designed artificially to avoid the operation of the mutual recognition principle. See, generally, sections 3 and 58 of [UKIMA].
19. Section 2(3) of [UKIMA] deals with the effect of the mutual recognition principle and provides that:
"Where the principle applies in relation to a sale of goods in a part of the United Kingdom because the conditions in subsection (1)(a) and (b) are met, any relevant requirements there do not apply in relation to the sale."
20. Section 5 of [UKIMA] deals with the non-discrimination principle for goods and provides at section 5(3) that a relevant requirement "is of no effect in the destination part if, and to the extent that, it directly or indirectly discriminates against the incoming goods". The concepts of direct, and indirect discrimination are further defined.
The Decision of the Divisional Court
"28. … the issue underlying this case will arise if and when the Senedd proposes legislation which is said to conflict with the provisions of [UKIMA]. Only then will the question arise as to the correct interpretation and effect of [UKIMA] on the provisions of that proposed legislation, and whether any of its provisions are outside the legislative competence of the Senedd. The effect of [UKIMA] on the proposed legislation may, as a minimum, be likely to be influenced or affected by the terms of the proposed legislation and the context in which it comes to be proposed. No legislation has yet been proposed, considered or passed by the Senedd. The issue of the effect of [UKIMA] on the provisions of such legislation has not yet arisen. Similarly, in relation to ground 2, the Secretary of State has not proposed, still less made, any regulations under the relevant powers conferred by [UKIMA] and the issue of their meaning and validity has not yet arisen.
29. As a general rule, the courts do not deal with claims for judicial review in such circumstances as the claim will be premature. The general position is set out in the judgment of the Divisional Court in Yalland at paragraphs 23 to 25…
30. …This a case where the relevant legal events have not yet arisen. The answer to the question of whether, and to what extent, the provisions of any legislation made by the Senedd would conflict with section 2 (or any other provision) of [UKIMA] has not arisen. That issue, and the question of how, precisely, any such conflict is to be resolved may well depend on, or be influenced by, the content of such legislation. The same is true of any regulations made under the powers conferred by [UKIMA].
31. Some examples were canvassed by way of example in oral argument. The claimant has indicated potential areas of concern in relation to food standards and environmental protection. Again, until legislation is proposed in relation to food standards, it will not be clear whether that proposed legislation, properly interpreted, falls within a reserved matter or an exception to it. Similarly, in relation to proposed environmental legislation, such as restrictions on the use of single use plastic, the issues that arise are likely to be influenced by the precise terms of the legislation and the context in which it is made. They will frame the issues that arise. Analysis of the relevant provisions of the legislation may determine whether they involve a restriction on the sale of goods or whether they involve a permitted restriction on the manner of sale. Furthermore, even if there were a conflict, the method of resolving that conflict may be more appropriately or properly addressed by means of a restrictive interpretation of relevant provisions of sections 2 or 3 of [UKIMA] rather than seeking to read words into Schedule 7B to GOWA. Furthermore, it may be that a particular proposed provision may not, on analysis, be one that was previously within the legislative competence of the Senedd (as it may, for example, have involved a breach of EU law prior to the end of 2020 and so would have been outside the legislative competence of the Senedd by reason of section 108A(2) of GOWA prior to its amendment). If so, that may be relevant to consideration of the claimant's argument that the operation of section 2 of [UKIMA] involves removing an area of the Senedd's legislative competence and in some way a re-reservation of matters to the United Kingdom Parliament. Similarly, the precise terms of any regulations made by the Secretary of State are likely to be relevant to the question of whether those regulations are ultra vires because they involve substantive modification of the provisions of [UKIMA].
32. For that reason alone, it is better and more appropriate for the issues concerning the effect of the provisions of [UKIMA] on the legislative competence of the Senedd, and the appropriate means of resolving any conflict between the two, to be considered in the specific legal and factual context of particular provisions of proposed Senedd legislation rather than by making abstract rulings shorn of any legal or factual context. As has been observed in a very different context, one "danger is that the court will enunciate propositions of principle without full appreciation of the implications that these will have in practice" (per Lord Phillips M.R. in R (Burke) v General Medical Council [2006] QB 273 at paragraph 21). The same is true in relation to ground 2.
33. None of the arguments put forward by Ms Mountfield justify departing from that general approach in the present case. It may well be that the issues raised will prove to be ones of importance. But that does not justify seeking to deal with them in the abstract without a proper legal and factual context to assess the relevant issues. The fact that the Counsel General, and the Welsh Government, would wish to know the extent of the Senedd's legislative powers before the Senedd considers proposed legislation does not justify the granting of advisory declarations either generally or in this particular case. Legislatures, and governments, must inevitably form a view as to whether proposed legislation is, for example, compatible with the Convention for the Protection of Human Rights and Fundamental Freedoms ("the Convention"). The courts may, ultimately, be asked to rule on whether or not a particular provision is compatible with a Convention right. That exercise occurs after the legislation has been enacted not before. Neither ministers, officials nor members of the legislature seek advisory declarations in advance as to what legislation may or may not be compatible with Convention rights. The same is true of Acts of the Senedd. The promoter of a Bill, and the Presiding Officer, will have to take a view as to whether proposed legislation is within legislative competence. The Counsel General may have to decide whether there is a question as to whether the provisions are within legislative competence and whether it is appropriate to refer a question to the Supreme Court. That has occurred on a number of occasions. However, neither the Counsel General, the Presiding Officer, nor members of the Senedd seek advisory declarations prior to the passing of Bills. The reason is that the role of the courts is to adjudicate on issues and determine questions of law which have arisen: not to give advisory declarations in the abstract."
"36. Finally, Ms Mountfield submitted that there was no factual issue here that needed to be identified. First, even if correct, that would not, of itself, justify entertaining the claim in the present case. The legal context, and the precise terms of any proposed Senedd legislation, would still be relevant, and likely to be influential, in determining the issues that arose and how they should be resolved. Secondly, in any event, there would be likely to be a factual context in which the proposed legislation was intended to operate and that may be relevant to an understanding of the proposed legislation and its relationship with [UKIMA].
37. For all those reasons, individually and cumulatively, we consider that this claim for judicial review is premature. In accordance with the general position, a claim concerning the meaning or effect of provisions of Senedd legislation, or whether the legislation is properly within the Senedd's legislative competence, is better addressed in the context of specific legislative proposals. It is inappropriate to seek to address such issues in the absence of specific circumstances giving rise to the arguments raised by the claimant and a specific legislative context in which to test and assess those arguments. Similarly, it is inappropriate to seek to give general, abstract rulings on the circumstances in which the power to make regulations amending [UKIMA] may be exercised."
Appellant's submissions
Respondent's submissions
Discussion and Conclusion
1) the general rule, identified in R (Yalland) v Secretary of State for Exiting the EU [2017] EWHC 630 (Admin), is that the court is concerned in proceedings for judicial review with adjudicating on issues of law that have already arisen for decision where the facts are established. Jurisprudence suggests a cautious approach on the part of a court to grant an advisory declaration, shorn of a factual and legal context, which reflects an acceptance that the issues which fall for determination may depend in part on factual matters or future events;
2) there is no reason to be concerned as to an issue of delay in this case in respect of future proceedings;
3) Parliament has created a route to address issues of competence in the light of specific legislation proposed by the devolved administrations (Section 112 GoWA).
Is it appropriate to decide the issue of law now?
"There are great dangers in a court grappling with issues… when these are divorced from a factual context that require their determination. The court should not be used as a general advice centre. The danger is that the court will enunciate propositions of principle without full appreciation of the implications that these will have in practice, throwing into confusion those who feel obliged to attempt to apply those principles in practice."
Could future proceedings be affected by an allegation of delay?
Is Section 112 GoWA the better way to resolve issues of competence?
Lord Justice Dingemans :
Sir Geoffrey Vos, Master of the Rolls :