PARLIAMENTARY DEBATE
Preparations for Leaving the European Union - 21 October 2019 (Commons/Commons Chamber)
Debate Detail
The Government are determined to do everything they can to leave the EU with a deal. The agreement that the Prime Minister concluded at last week’s European Council gives this House the opportunity to honour the votes of the 17.4 million people who voted to leave the EU by doing so on time and in an orderly fashion. Parliament had the opportunity on Saturday to support a meaningful vote that would have allowed us to proceed smoothly to ratification of our deal and exit on 31 October, but the House instead voted in such a way as to put an orderly exit on that date in doubt.
I appreciate and understand the honest intentions and genuinely sincere motives of many of those who voted for the amendment in the name of my right hon. Friend the Member for West Dorset (Sir Oliver Letwin). Let me place on the record once more the high personal regard in which I hold him. I know that he always acts in what he believes to be the national interest, and I deeply deprecate the personal criticism directed towards him. However, the House’s decision to request that a letter seeking an extension to article 50 be sent creates no certainty about our exit in an orderly fashion on 31 October.
Before Saturday’s proceedings in the House, European leaders, including the President of the European Commission, the President of France and the Taoiseach, deliberately and explicitly explained that Members should not cast their vote on the assumption that the EU Council will offer an extension. There is no certainty in this matter. Furthermore, no formal response from the EU has yet been received to the two letters sent by the Prime Minister on the evening of Saturday 19 October: the first requesting an extension to the 31 October deadline as required under the European Union (Withdrawal) (No. 2) Act 2019, and the second setting out the Government’s position that a delay to Brexit would be corrosive, a view shared by the leaders of the EU27.
With no clear agreement yet in this House to ratify our withdrawal agreement and no certainty that an extension will be granted by 31 October, I must take the appropriate steps now to prepare for the increased possibility that the legal default position will follow and that we will leave on 31 October without a deal. The clear advice to me from officials is that we must now intensify contingency arrangements. That is why the Cabinet’s XO Committee met yesterday to agree that Government Brexit preparations now move into their final, most intensive phase, and that Operation Yellowhammer should be triggered.
Let me be clear that no one would be happier than me to turn off those preparations and stand down planning for no deal. I do not think anyone in this House can doubt my desire to see a deal concluded. However, if we are to be certain to avoid a no-deal outcome on 31 October, we must vote for the Prime Minister’s deal, we must ensure that the vessel that brings certainty passes expeditiously through this Parliament and we must avoid attempts to delay, capsize or hole it below the waterline.
In that spirit, I thank the many parliamentarians across the House who have indicated they will be backing the Prime Minister’s deal, which, until he brought it home, many people thought would be impossible to negotiate. The deal ensures that we can leave the EU, and it is entirely consistent with the Belfast agreement and all our other domestic and international obligations. I can also underline that, once a withdrawal agreement has been ratified, the whole House will be involved in agreeing the mandate for negotiations on our future partnership arrangements with the EU, and we will work particularly closely with all parties to ensure that vital protections for workers and the environment are secure.
In underlining the vital role that all MPs will play in securing a strong future partnership, I emphasise that we want business, trade unions and civil society to help shape a bright future outside the EU. It is striking how organisations such as the Chemicals Industries Association, UK Finance, the Country Land and Business Association and the Federation of Small Businesses have welcomed progress on the deal and have asked parliamentarians to end the uncertainty by supporting an agreement. However, as I have explained, in the absence of that certainty, preparations for the risk of no deal must be intensified.
We will now accelerate our efforts to help businesses and individuals mitigate any dislocation and disruption that may ensue. From today, the XO Committee will meet seven days a week to provide strong ministerial focus across the Government. Hundreds of public servants across the UK will have to be redeployed. They will transfer to work in operations centres, ready to identify challenges, work together to resolve problems swiftly and implement contingency plans as required. Government, local resilience bodies and operational partners will be working together, ready to respond 24 hours a day according to need. We are also finalising the latest update of our reasonable worst-case planning assumptions and will share them with the House shortly.
Of course, we must maintain our public information campaign, which, from tomorrow, will reflect the renewed urgency of preparation. The advice will help businesses and individuals appreciate what they must do to prepare, given the uncertainty that still unfortunately prevails. I again urge everyone to check the information relevant to their situation on gov.uk and also the comprehensive summary of actions to take contained in the Government’s “No-Deal Readiness Report” published on 8 October.
We are complementing the information campaign with hands-on advice and assistance. The Department for Transport is continuing to give personal advice to hauliers at sites across the UK and the European Union and working with local resilience forums to finalise traffic management plans, ensuring the smooth flow of people and goods across the short straits. In addition, it was announced on 11 October that four operators— Brittany Ferries, DFDS, P&O Ferries and Stena Line—had been successful in their bids to deliver freight capacity for a six-month period from 31 October to 30 April 2020. They will operate over 13 routes and from eight ports in England: Teesport, Hull, Killingholme, Felixstowe, Harwich, Tilbury, Poole, and Portsmouth. I commend my right hon. Friend the Secretary of State for Transport for the smooth, effective way in which that extra freight capacity has been secured.
Her Majesty’s Revenue and Customs is stepping up work to deliver its export webinar programme to thousands of firms. The Department for Environment, Food and Rural Affairs is distributing a farming Brexit advice guide to agriculture businesses. And the Department for Business, Energy and Industrial Strategy is reaching hundreds of companies at readiness roadshows.
We have help desk capacity in place at all key Departments, with advisers ready to give the direct support required. This will build on the estimated 850 recorded engagements with business by the Department for Exiting the European Union and other Government Departments.
We are taking note of all the comments and feedback left on gov.uk by people who seek advice, and we are passing on details of specific issues of concern to the relevant Government Departments. We are also accelerating our programmes of key policy and legislative decisions to ensure full readiness, including making and tabling secondary legislation. We will be tabling the final statutory instruments to ensure that all critical Brexit-related legislation necessary for day one is in force by 31 October. This includes legislation for the new temporary tariff regime for customs and the legislation for avoiding a hard border in Ireland.
It remains the case that Northern Ireland would face unique challenges in a no-deal Brexit, and we will need to take steps to ensure effective governance and to give direction to the Northern Ireland civil service. In the absence of devolved government—today’s sitting of the Northern Ireland Assembly being a rare exception in the past two years—my right hon. Friend the Secretary of State for Northern Ireland has made alternative arrangements for governance. Legislation and guidance have been introduced to empower Northern Ireland’s superb civil servants to continue taking decisions that are in the public interest. Once again, I record my gratitude to the Northern Ireland civil service, to the Police Service of Northern Ireland and to all those who work in public service in Northern Ireland for their unstinting commitment to safeguarding the welfare of all our citizens.
The arrangement in Northern Ireland has been sustainable to date, but leaving without a deal would represent a formidable challenge to the current position. In that case, we would have to start formal engagement with the Irish Government on further arrangements for providing strengthened decision making, which would include the real possibility of restoring a form of direct rule. We would, of course, do everything to ensure that the interests of all communities across Ireland are safeguarded in any arrangements, but we must all recognise that this would be a grave step from which experience shows us it would be hard to return, particularly in the context of leaving without a deal.
Even as we prepare for the challenges of a no deal, we will make the case at every forum we can for leaving with a good deal. Parliament has previously shown determination and a focused resolve to pass laws expeditiously when the occasion warrants. The deal we have secured honours the referendum mandate this House pledged to uphold and allows the UK to leave the EU whole and entire, and it puts in place the pathway to a new partnership with the EU based on free trade and friendly co-operation.
That is why I, again, urge my colleagues in this House—all of us democrats, first and foremost—now to support the Prime Minister’s deal. I commend this statement to the House.
The Minister has told us that the Cabinet XO Committee will be meeting daily, and I hope he will be able to keep the House fully informed of its further decisions, as and when appropriate. When the Prime Minister appointed him as Minister for a no-deal Brexit, I think the idea was that he would try to avoid such a situation rather than try to make it possible. His statement fills me with foreboding for the country, because it appears as if the Government really do think that 31 October is a date this House will tolerate. I have to tell him that I do not believe that will be the case. In any event, the Prime Minister himself sent a letter to the European Union—he forgot to sign it, apparently—saying that he will pursue a delay, so 31 October seems to be an artificial date.
I will be brief, as there is still much to do this evening. The Government’s own assessment shows that a no-deal Brexit would be a disaster for jobs, for industry and for living standards. Their own assessment says there will be a 10% loss of GDP over the next 15 years, and the Institute for Fiscal Studies says that a no-deal outcome would result in Government borrowing rising by up to £100 billion, debt escalating to 90% of national income and growth flatlining. None of those is just a number on a spreadsheet, as I am sure he understands. These are real people’s jobs, livelihoods, communities and even family businesses, often built up over generations—all of them are now at risk.
This is not “Project Fear.” It is already happening here and now. Is the Minister aware that the manufacturing trade body, Make UK, has warned that even the prospect of a no-deal Brexit has meant that exporters are already suffering losses? The most deprived regions of the country would be hit hardest by a no deal, and the Government’s own figures show that people on the lowest incomes will suffer the most. [Interruption.] Many people are shouting from a sedentary position, "Vote for the deal." The Prime Minister’s free trade Brexit deal will result in every person in our country being £2,250 worse off, which is why we will not support the deal.
Instead of taking a no deal off the table, the Government are continuing to spend billions of pounds of taxpayers’ money on Operation Yellowhammer, and they are probably diverting thousands of civil servants. How much money does the Minister estimate will be spent on this futile project? Surely the money would be better spent on rebuilding our country. Can he confirm that Operation Yellowhammer would not even come close to managing the economic disaster the whole country will face if we crash out with a no deal? That is not to mention the problems facing Ireland.
Operation Yellowhammer shows the disastrous impact of no deal on medical, food and energy supplies, which is why Members on both sides—this is a very important point—have repeatedly shown there is no will in this House to turn for a no deal. It will not happen.
Some have argued that a no deal was really just a negotiating tactic, a ruse to force concessions from the EU, but the Government have now finished their negotiations with the EU. Why, then, have they continued to place this sword of Damocles over the whole country?
The Minister claimed this weekend that the risk of leaving without a deal has increased, but how can that be? The opposite is the case, because the House has voted repeatedly to stop the Government crashing us out with no deal. The truth is that the Prime Minister thinks the only way to get legislation for this sell-out deal through this House of Commons is to bully and blackmail MPs with the threat of a no deal, but he has lost the consent of the House. He double-crossed the DUP, and he has taken a bulldozer to most of our procedures. His behaviour has thrown away the good will of hon. and right hon. Members. More than anything else, he has disposed of the good will of the House in the manner of the Godfather casting confetti at a mafia family wedding.
Even at this late stage, I press the Government to change course. A no deal would damage our country, injure our economy and inflict lasting damage on the nation. Abandoning a no deal might have the inadvertent and, some might say, lamentable consequence of placing the Minister for no deal on the Back Benches. Regrettable as that might be, some of us might think it a price worth paying.
The hon. Gentleman asked me to keep the House informed even as the XO Committee sits every day, and I will do my best to do so. I am certain there will be an opportunity for at least one more statement, and I will be happy to respond to any urgent questions in his or any other Member’s name that relate to our Brexit preparations.
The hon. Gentleman asked about 31 October and suggested that the date is artificial. I fear it is not, as the date is fixed in legislation as a result of the article 50 process and has been agreed with the European Union. One of the important things that all of us in this House need to bear in mind is that EU leaders have made it crystal clear that they want the deal done, and they want it done by 31 October. The reason why the risk of no deal has increased materially is that EU leaders have said we cannot be certain that an extension will be granted. In those circumstances, there is one way to bring certainty, and I know that the hon. Gentleman knows this in his heart. The way in which we can bring certainty is by voting for the Prime Minister’s deal.
The hon. Gentleman asked about the cost of preparation. One thing the Prime Minister has stressed, and which is absolutely true, is that once we leave with a deal, we will be outside the customs union and the single market, and much of the preparation that will have been done in advance of 31 October will enable businesses to benefit from the free trade agreement that we hope to conclude with the EU and the new trade agreements we will conclude with other nations. There is a bright future ahead but it requires all of us to listen to the voice of this country and get Brexit done.
I agree with the right hon. and learned Member for Rushcliffe (Mr Clarke): how come this date of 31 October has become elevated to the extent it has? The Government have this Halloween fetish now. The only reason 31 October matters—rather than, say, a week, month or year later—is to save face for this Prime Minister. It is a rum day indeed when the Government of the day are more concerned about the vanity of the Prime Minister than they are about making good legislation and doing what is good for the country. Is the truth not that all this talk of Yellowhammer and no-deal preparations is a propaganda exercise, trying to whip up fear and anxiety to drive people into the welcoming arms of the Prime Minister’s deal, in relief and thankfulness? It won’t work, Chancellor.
The hon. Gentleman made two other points. He asked why fetishise the date of 31 October. That is the date in law that has been passed in this House and by the EU as the date by which we must leave, following the extension of article 50. It is not a date that was chosen by my right hon. Friend the Prime Minister and it was certainly not one chosen by me. It was a date that this House accepted, following negotiation with the EU, and that is the law. It is also the case that, in law, any extension has to be granted by all EU27 member states. We are sometimes accused in this House of being insular, but the President of the Commission, the Taoiseach and the French President have all made it clear that there is no guarantee that any extension will be issued. All those of us who value relationships with our friends and neighbours in Europe should take heed of what they say; no extension is guaranteed, and no certainty exists. That is why we must back this deal, and I hope that SNP Members, who have done so much to say why no deal is unwelcome, will, at this late stage, repent and recognise that the interests of our United Kingdom are served by their presence in the Lobby supporting this deal.
My right hon. Friend is right that significant investment has been made by the French Government to ensure that, exactly as he says, electronic information can be exchanged before trucks arrive in Calais, to allow them to move smoothly through the green lane and, if they are carrying fish or shellfish, to move smoothly to the border inspection post at Boulogne-sur-Mer.
It is the case that we have had conversations with lots of business organisations to ensure that they are as well prepared as possible. As I have said before, the impacts of leaving without a deal will depend on different economic sectors reacting in different ways.
“an export declaration is required for all movement of all goods from Northern Ireland to GB”
in order to ensure that the EU’s obligations are properly discharged. The Chancellor says that he holds the Union very dear. These arrangements make the Union very expensive.
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.