Brexit Omnibus Bill Update

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Brexit Omnibus Bill Update
                                   Tuesday, 26 February 2019

This is an update to the L&RS Bill Digest published on Tuesday 19 February on the General
Scheme of the Miscellaneous Provisions (Withdrawal of the United Kingdom from the
European Union on 29 March 2019) Bill 2019

The Withdrawal of the United Kingdom from the European Union (Consequential Provisions)
Bill 2019 has now been published and this document focuses on notable changes between
the General Scheme and the Bill.1

Summary of changes
       The Bill is now called the Withdrawal of the United Kingdom from the European
        Union (Consequential Provisions) Bill 2019.
       Railway services (Part 9 of the General Scheme) are not included in the Bill.
       Amendments to the Data Protection Act 2018 (Part 16 of the General Scheme) are
        not included in the Bill.
       The exchange of immigration data with the UK (Part 17 of the General Scheme) is
        not included in the Bill.
       Part 9 of the Bill deals with the Amendment of Harbours Act 1996 and pilot
        exemption certificates issued by harbour companies – this was not covered by the
        General Scheme.
       Part 15 of the Bill is titled Miscellaneous but is materially the same as Part 13 of the
        General Scheme which dealt with changes to the Interpretation Act 2005
       Part 6 of the Bill which deals with taxation now includes provisions in relation to VAT.
        Other changes are detailed below.
       Part 11 of the Bill dealing with Social Welfare has been amended in a number of
        ways detailed below.
       Part 13 of the Bill dealing with extradition (previously Part 14 of the General Scheme)
        now allows for the direct transmission of extradition requests to the Minister for Justice
        and Equality.
       Part 14 of the Bill (previously Part 15 of the General Scheme) now amends the
        Immigration Act 2004 to give an immigration officer the power to take fingerprints of a
        person for the purpose of a person’s application for an Irish visa or transit visa.
        where he or she thinks it necessary for ensuring the integrity of the Common Travel
        Area (CTA).

1
 There are often changes between the General Scheme of a Bill and a Bill that is initiated in the
Oireachtas.
Bill Digest Update | L&RS update following publication of the Withdrawal of the United
Kingdom from the European Union (Consequential Provisions) Bill 2019

Table 1: Comparison between the General Scheme of the Miscellaneous Provisions (Withdrawal
of the United Kingdom from the European Union on 29 March 2019) Bill 2019 and the
Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill
2019
Section       Bill                  General Scheme              Difference             Implication
              Withdrawal of the
              United Kingdom
              from the European
              Union                                             Name change
                                    General Scheme of
              (Consequential
                                    the Miscellaneous
Part 1:       Provisions) Bill
                                    Provisions (Withdrawal                             The title of the Bill
Preliminary   2019.                                             Commencement
                                    of the United Kingdom                              is changed
and General                                                     information is
                                    from the European
              Sets out collective                               grouped together
                                    Union on 29 March
              citations                                         rather than in each
                                    2019) Bill 2019
                                                                Part
              Sets out
              commencement
              information

                                                                The lay out of the
                                                                Part has changed
                                                                and some of the text

                                                                The Minister for
                                                                Health now has a
              Arrangements in                                   more general power
                                    Health care                                        The Part is
Part 2        relation to health                                to make
                                    arrangements                                       materially the same
              services                                          an Order/s and
                                                                Regulations to
                                                                enable necessary
                                                                healthcare
                                                                arrangements to be
                                                                maintained between
                                                                Ireland and the UK.
              Amendment of
                                    Industrial Development
              Industrial
Part 3                              Miscellaneous               No material change     No material change
              Development Acts
                                    Provisions
              1986-2016
                                    Transitional power to
                                    modify licence
              Amendment of          conditions concerning
              Electricity           the Commission for
Part 4                                                          No material change     No material change
              Regulation Act        the Regulation of
              1999                  Utilities, Brexit and the
                                    Single Electricity
                                    Market, etc.
              Amendment of
Part 5
              Student Support       Student Support             No material change     No material change
              Act 2011
                                                                There are some         VAT is now
Part 6        Taxation              Taxation
                                                                changes see below      included in the Bill
Oireachtas Library & Research Service | Bill Digest

                                                             S.62 of the Bill
                                                             includes a timeframe
                                                             of 9 months for a
                                                             UK-based CSD to
                                   Financial Services:       avail of a temporary
             Financial Services:   Settlement Finality       designation for up        Designation is time
Part 7
             Settlement Finality   (Third Country            (following the date of    limited
                                   Provisions)               UK withdrawal) for
                                                             the purposes of
                                                             protection under the
                                                             Settlement Finality
                                                             Regulations

             Financial Services:   Financial Services:
             Amendment to the      Amendment to the
             European Union        European Union
             (Insurance and        (Insurance and
             Reinsurance)          Reinsurance)
Part 8                                                       No change                 None
             Regulations 2015      Regulations 2015 and
             and the European      the European Union
             Union (Insurance      (Insurance
             Distribution)         Distribution)
             Regulations 2018      Regulations 2018
                                                             Part 9 now covers
                                                                                       The Bill does not
             Amendment of                                    pilot exemption
Part 9                             Railway services                                    cover railway
             Harbours Act 1996                               certificates issued by
                                                                                       services
                                                             harbour companies.
                                                                                       New power to the
                                                             The Minister is given     Minister to make
                                                             a general power to        regulations under
                                                             make secondary            the Road Transport
                                                             legislation in            Act 1978 with new
                                   Bus and coach             particular                provisions related
             Third country bus
Part 10                            services                  circumstances where       to bus operator
             services
                                                             there is a real risk of   licensing
                                                             disruption to the         documentation
                                                             international carriage    issued in a third
                                                             of passengers by          country where it is
                                                             road                      considered
                                                                                       necessary
             Amendment of the      Amendments to the                                   Some areas
             Social Welfare        Social Welfare            Numerous changes          covered in the
Part 11
             (Consolidation) Act   (Consolidation) Act       detailed below            General Scheme
             2005                  2005                                                have been omitted.
             Amendment of
                                   Amendment of
             Protection of                                   Bill is more detailed
                                   Protection of
             Employees                                       and references more       The Part is
Part 12                            Employees
             (Employers’                                     up to date EU             materially the same
                                   (Employers’
             Insolvency) Act                                 legislation
                                   Insolvency) Act 1984
             1984
                                                                                       Provisions are
                                                                                       mostly the same
                                                                                       the Part now allows
             Amendment of                                    Part 13 now deals         the direct
                                   Amendment to the
Part 13      Extradition Act                                 with the Extradition      transmission of
                                   Interpretation Act 2005
             1965                                            Act 1965                  extradition requests
                                                                                       to the Minister for
                                                                                       Justice and
                                                                                       Equality
Bill Digest Update | L&RS update following publication of the Withdrawal of the United
Kingdom from the European Union (Consequential Provisions) Bill 2019

                                                                                        Includes a legal
                                                                                        basis for taking
                                                                                        fingerprints of Irish
                                                               Part 14 now deals        visa and
                                                               with immigration         Irish transit visa
                                      Amendments to the        (previously Part 15 of   applicants, to
Part 14          Immigration
                                      Extradition Act 1965     the General Scheme)      enable the
                                                               rather than              continuance of the
                                                               extradition.             British-Irish
                                                                                        Visa Scheme,
                                                                                        pursuant to CTA
                                                                                        arrangements
                                                                                        The text in Part 15
                                                               Amendments to the
                                      Amendments to the                                 of the Bill is
                                                               Immigrations Acts
Part 15          Miscellaneous        Immigration Acts 1999                             materially the same
                                                               are now made in Part
                                      and 2003                                          as Part 13 of the
                                                               14
                                                                                        General Scheme
                                      Amendments to the                                 The Bill does not
                                                               This Part is not
Part 16          N/A                  Data Protection Act                               amend the Data
                                                               included in the Bill
                                      2018                                              Protection Act 2018
                                                                                        The exchange of
                                      Exchange of
                                                               This Part is not         immigration data
Part 17          N/A                  immigration data with
                                                               included in the Bill     with the UK is not
                                      the UK
                                                                                        covered in the Bill

Details of changes

Part 6: Taxation
Part 6 of the Bill is different to Part 6 of the General Scheme in a number of ways. Some
references in the General Scheme have been omitted, and a provision in relation to VAT has
been included.
     There is no reference to s. 848B of the Taxes Consolidation Act (TCA) 1997 (Special
        Savings Accounts) in the Bill (Heads 6 & 7 of the General Scheme). .
     There is no reference to s. 470B TCA 1997 (age-related relief for health insurance in
        premiums) in the Bill (Head 9 of the General Scheme).
     Head 32 of the General Scheme proposes a measure to deal with merger relief on
        property acquisitions under s. 87B of the Stamp Duties (Consolidation) Act 1999: no
        mention of this in the Bill
     Section 46 is a new section which amends s. 615 TCA (Company reconstruction or
        amalgamation: transfer of assets). This was not part of the General Scheme.
     Chapter 5 of Part 6 (sections 50-53) dealing with VAT is new as this was not part of
        the General Scheme.

Part 7: Settlement Finality
         Section 62 of the Bill enables any UK settlement system (e.g. a UK-based CSD) to
          avail of a temporary designation for up to a maximum period of 9 months (following
          the date of UK withdrawal) for the purposes of protection under the Settlement
          Finality Regulations – providing it notify the Central Bank of Ireland and Minister for
          Finance within 3 months of the withdrawal date (‘relevant date’);
Oireachtas Library & Research Service | Bill Digest

Part 9: Amendment of Harbours Act 1996             *NEW PART*
         Section 9 is a new part and deals with pilot exemption certificates issued by harbour
          companies. One of the current conditions of the granting of a pilot exemption
          certificate is that the grantee is an Irish citizen; a national of another EU Member
          State; or a national of a State with which Ireland has reciprocal arrangements for the
          grant by that state to an Irish citizen of a certificate that, under the law of that state,
          has the equivalent effect to a pilotage exemption certificate. It is unlikely that a
          reciprocal arrangement can be made with the UK in in the event of a no-deal exit by
          the UK on the 29th March 2019.
         Section 69 extends the period of validity of Pilot Exemption Certificates issued by
          Harbour companies from the existing maximum one year period to a maximum of
          three years. It also provides that current holders of Pilot Exemption Certificates can
          apply for new certificates in the period leading up to 29th March, even where their
          existing Pilot Exemption Certificates may not have expired.
         Section 70 aims to amend the Pilotage Bye-Laws powers of harbour companies to
          enable the relevant harbour company to require the holder of a Pilotage exemption
          certificate of more than one year’s duration to undergo a periodic review to ensure
          that they continue to have the skills, experience, and local knowledge of the relevant
          harbour pilotage district to enable the holder to pilot the ship within that pilotage
          district.

Part 11: Amendment of Social Welfare Consolidation Act 2005
Part 11 of the General Scheme was made up 9 Heads, and Heads 1-7 are not included in
Part 11 of the Bill. Between the publication of the General Scheme (24 January 2019)
and the Bill, a Convention on Social Security between the Government of Ireland and the
Government of the United Kingdom of Great Britain and Northern Ireland (signed at official
level on 1 February 2019) was laid before Dáil on 7 February 2019. A motion to approve the
terms of the convention was referred by the Dáil to the Select Committee on Employment
Affairs and Social Protection on 12 February with a requirement to send a message to the
Dáil in the manner prescribed in Standing Order 90 no later than 5 March 2019.
Due to the unique nature of the Common Travel Area between the UK and Ireland and
associated rights conferred on Irish and British citizens in each other’s countries, the
Convention seeks to formalise pre-existing CTA social protection arrangements in a
documented agreement. This is likely to cover the areas set in Heads 1 to 7 of the General
Scheme which are not included in the Bill. Under the terms of the Convention, all existing
arrangements with regard to recognition of and access to social insurance entitlements will
be maintained and protected in both jurisdictions.
On 21 February 2019, the Select Committee on Employment Affairs and Social Protection, in
accordance with Standing Order 90 sent the following message to the Dáil:2
       “That Dáil Éireann approves the terms of the Convention on social security between the
       Government of Ireland and the Government of the United Kingdom of Great Britain and
       Northern Ireland, done at Dublin on 1st February, 2019, a copy of which was laid before
       Dáil Éireann on 7th February, 2019.”

2
    Available here.
Bill Digest Update | L&RS update following publication of the Withdrawal of the United
Kingdom from the European Union (Consequential Provisions) Bill 2019

1. Head 1 of the General Scheme amending s. 4 dealing with regulations is removed from
   the Bill.
2. Head 2 of the General Scheme mending s.38A (amendment to Part 2 (Social Insurance)
   is removed from Bill.
3. Head 3 of the General Scheme amending s.246 (Habitual Residence Condition) is
   removed from the Bill.
4. Head 4 of the General Scheme amending s.247 (avoidance of multiple payments) is
   removed from the Bill.
5. Head 5 of the General Scheme amending s. 249 (absence from the State or
   imprisonment) is removed from the Bill.
6. Head 6 of the General Scheme amending s.249 also (provisions relating to entitlement
   (Part 9, Chapter 1)) is removed from the Bill.
7. Head 7 of the General Scheme amending s.261 (exchange of Information) is removed
   from the Bill.

Head 8 amending section 287 “Reciprocal arrangements” has been included. Section 77(a)
replicates what is set out in the General Scheme’s Head 8(1).

According to the Explanatory Memorandum to the Bill, section 77(b) provides that an
arrangement under section 287 (see reference to Ireland /UK social security convention)
includes an agreement, in certain circumstances, which is intended to be binding on the
Minister, the State or the Government, “where it has not yet become binding”. The effect of
this is to allow the Minister to make an order to provide for the implementation of an
agreement (Convention on Social Security between the Government of Ireland and the
Government of the United Kingdom of Great Britain and Northern Ireland, which ensures
continuity of Common Travel Areas social protection arrangements, signed on the 1st
February) if that is required before the ratification process has been completed.

Section 78 of the Bill is new and makes consequential amendments to three sections in the
Principal Act.
  S78(a) amends section 113A (Entitlement for invalidity pension recipients) of the
   Principal Act inserting after subsection (4) new subsections 4(A) and 4 (B) making
   reference to the UK.
  Section 78(b) amends section 205 (Recoupment of supplementary welfare allowance)
   by inserting references to the UK.
  Section 78(c) inserts a new Part following section 239 (Certain EU payments –
   entitlement to island allowance), which is the first section of Part 8 EU Payments. The
   new “Part 8A Certain Payments – Entitlement to Island Allowance” provides for
   references to the UK.
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