PARLIAMENTARY DEBATE
UK’s Withdrawal from the European Union - 13 March 2019 (Commons/Commons Chamber)
Debate Detail
That this House declines to approve leaving the European Union without a Withdrawal Agreement and a Framework for the Future Relationship on 29 March 2019; and notes that leaving without a deal remains the default in UK and EU law unless this House and the EU ratify an agreement.
Let me begin by paying tribute to our Prime Minister. She may have temporarily lost her voice, but what she has never lost, and will never lose, is a focus on the national interest and a full-hearted desire to do what is right for our country.
Since the withdrawal agreement was concluded, the Prime Minister has stood at the Dispatch Box for more than 19 hours. She has answered many questions, and made compelling arguments. Throughout this process she has shown fortitude, tenacity, thoughtfulness, diligence and, above all, an unselfish and unstinting patriotism. I think it only appropriate that in all parts of the House, whatever political differences we have, we recognise that the Prime Minister always, always puts country first, and that we are fortunate to have her in that position.
The House voted to give the people of this country a choice as to whether we were to remain in the European Union or leave it, and 17.4 million people—a clear majority—voted to leave. That is a mandate that we must respect, and an instruction that we must deliver. It is also the case that at the last general election, both principal parties stood on manifestos that pledged them to deliver our departure from the European Union. It is vital that we honour that manifesto promise, those instructions, and our democracy. Those outside the House who sent us here to act on their will and deliver that mandate will take a very, very dim view of those who seek to frustrate, deny or dilute the mandate that we were given.
As a result of the House’s failure to agree to the deal the Prime Minister presented last night we now face a number of unattractive choices, and it is important that the House realises that all of these choices are less attractive than support for the deal the Prime Minister negotiated. We can choose as a House to leave without a deal, but there are significant economic, political and constitutional challenges if we embark on that course which I will go into in just a second. We could accept a deal less attractive than that which the Prime Minister secured, and as my hon. Friend the Member for Harborough (Neil O'Brien) has pointed out, there are many in this House who would have us leave the EU in a way that does not honour the referendum mandate and does not honour the manifesto promises at the last general election. Doing that would not only circumscribe this country’s sovereign right to make decisions in its own interests, but undermine and further erode faith in democracy. But if we are talking about faith in democracy, either frustrating the vote altogether by revoking article 50 or seeking to overturn it with a second referendum would be choices of far greater magnitude, and to my mind be far more damaging.
I stressed earlier that if we choose to leave without a deal on 29 March, this country will face economic, political and constitutional challenges. We are a great country, and we would get through it. We would in due course ensure that this country was more prosperous, freer and successful, and of course the Government have been working hard to ensure that we can be prepared for any eventuality and that we can mitigate the risks of leaving without a deal. At this stage, I should like to pay particular tribute to the civil servants across the Government who have been working exceptionally hard and with great skill to ensure that we are ready for any eventuality. We do not pay tribute to civil servants often enough, and I am sure that everyone across the House will recognise how important their work is. However, I stress that that work is work to mitigate the challenges.
If we were to leave on 29 March without a withdrawal agreement, we would be treated as a third country by the European Union. That would mean that we would face tariffs on many of our products. I am acutely aware that some of the highest and most severe tariffs would be imposed on food. Our sheep farmers and beef farmers would face the instant imposition of tariffs of at least 40% and in some cases more than 100%. Their livelihoods, and indeed the economic and social health of our countryside, would face very challenging circumstances. None of us can be blithe or blasé about those challenges.
We also know that there are at least 145,000 businesses in this country that trade with the EU—and of course do commerce in the UK—but do not trade outside the EU. As soon as we become a third country, they will need to register with Her Majesty’s Revenue and Customs in order to ensure that their trade can continue. Those businesses will need to secure their economic operator registration and identification—EORI—numbers and the other documentation necessary to trade. At the time of speaking, only about 50,000 of those 145,000 businesses have made those preparations. That means that, just over a fortnight away from the prospect of leaving without a deal, a significant number of businesses in this country do not have the wherewithal, the means, or the appropriate documentation to carry on trading.
On top of that, products of animal origin being exported to the European Union will need to undergo sanitary and phytosanitary checks—in addition to customs and other checks—at a border inspection post. A significant amount of our food produce crosses the narrow strait from Dover to Calais or goes through Eurotunnel. At the time of speaking, there is no border inspection post at either of those ports. Of course, there are many things that this Government can do to mitigate the consequences of no deal, but we cannot dictate what the EU’s tariffs will be, we cannot instruct the port authorities in France on how to order their affairs, and we cannot compel businesses to acquire the means necessary to continue to trade in the way that they have been doing. These all represent cumulative costs that businesses would face in the event of a no-deal exit on 29 March.
There are also political challenges in leaving on 29 March without a deal. As my hon. Friend the Member for South Leicestershire (Alberto Costa) pointed out, during the referendum campaign we argued that we should leave with a deal. I am also conscious that, while our mandate was clear, it is also the case that with a 52:48 result, we need to take into account the hopes and concerns of those people who did not vote to leave the European Union. The Prime Minister’s deal does that; it does more than that. Many people who voted to remain—including Members of this House in my party and in others—have accepted the result and wish us to leave in order to honour that mandate. However, they do not want us to leave on 29 March without a deal. There would inevitably be political strains and pressures consequent on leaving without a deal on 29 March that no Minister can afford to ignore.
More than that, it is important to stress that there are also significant constitutional challenges. It is the case, as several hon. Members have pointed out, that a majority of voters in Scotland and in Northern Ireland voted to remain in the EU, but we voted as one United Kingdom, and we voted to leave. It is striking that support for the Union in Scotland has risen since the vote—[Hon. Members: “It’s gone down!”] Well, we only need look at the ranks of Scottish Conservative MPs, who turfed out the partitionist part-timers of the SNP, to see which way the tide was flowing—[Interruption.] They don’t like it up ’em.
However, it is also clear that the current situation, with no Executive, would be difficult to sustain in the uniquely challenging context of a no-deal exit. If the House voted for no deal, we would have to start formal engagement with the Irish Government about further arrangements for providing strengthened decision making in the event of that outcome. That would include the real possibility of imposing a form of direct rule. That is a grave step, and experience shows us that it is hard to return from that step, and it would be especially difficult in the context of no deal.
The Labour party is now committed to a second referendum, but many of its leading spokespeople have made clear what they thought of a second referendum in the past. The shadow Education Secretary said that it would be a mistake and would show disdain for democracy. Indeed, the shadow Foreign Secretary, the right hon. Member for Islington South and Finsbury (Emily Thornberry), when asked about a second referendum, said, “No, we don’t think that’s right. If we went for a second referendum we would be saying to people, ‘We think you’re stupid. We think you made the wrong decision. We’re going to do something else.’” Now that she embraces a second referendum, I am afraid that having once sneered at the flag of St George, she now confirms that she wants to tell the British people that they are, in her view, wrong and stupid. That may be a view popular in Islington South, but it is not the view of the Government, who are determined to honour the votes of the British people and who will not dismiss their sovereign decision as either wrong or stupid.
I wish to turn to one other proposition that has been put forward as an alternative, and that is the position of the official Opposition, which, while not shaped by an amendment today, is their policy, which is that we should be members of a customs union. What is striking about the position that they put forward for the customs union is that they say that, in that customs union, we should be able to offer businesses state aid, which we are not able to offer in the EU. Well, that would be illegal. They also say that we should have a voice in that customs union in the EU’s negotiation of trade deals. Well, no such voice for any member of the customs union who is not a member of the EU exists. They also say that we should have independent trade remedies separate from those that the EU provides.
I was very generous to the Secretary of State. We all enjoy his rhetorical flourishes and I will not repeat the precise words, but he used a little formulation a moment ago that was very, very borderline as far as the procedures of this House are concerned. I very gently say to him that what passes muster at the Oxford Union might not be acceptable in the Chamber of the House.
I hope that people recognise that I have tried to take as many interventions as possible, but we must now move on to hear from the principal Opposition spokesman and, of course, to make sure that as many Back Benchers as possible have their voices heard.
It is important that all of us in this House recognise that, as a result of the vote last night, there are no easy options, no attractive choices, left. I hope in the debate today and, inevitably, in the debate that follows tomorrow, we all take the responsibilities of representing our constituents as seriously as possible. We all need to recognise that leaving on 29 March without a deal would impose economic, political and constitutional challenges and risks for this country that I do not believe that we should undertake. I therefore think that it is important that we all work across this House, and across old divisions, to try to seek a consensus—a consensus that could unite all four nations of the United Kingdom and could unite all our citizens in making sure that we honour the referendum mandate and we leave the European Union in a way that is economically sensible and democratically legitimate. That is why I commend this motion to the House.
[The Division list is published at the end of today’s debates.]
If the Prime Minister had opened the debate, I think she would have engaged seriously with the points being made by others, rather than hurling easy insults and not engaging with the points. This is a serious debate about a very serious matter, and it needs to be conducted in the right way. The debate is long overdue. On this side of the House, we have never accepted that there should be a binary choice between the Prime Minister’s deal or no deal—“very bad” or “even worse” is not a meaningful choice and would be a very sorry end to the negotiations. Yesterday, the House overwhelmingly voted to reject the Prime Minister’s deal, which is the first of those options. Today, we have the chance to reject the second, and we should do so with as big a majority as possible. The mantra of “My deal or no deal” needs to be dead and buried tonight.
The Prime Minister used to tell us that no deal would not be the end of the world. Past Brexit Secretaries even talked up the merits of leaving on WTO terms or told us how crucial threatening no deal was to the negotiations. But Labour Members have been steadfast in insisting that no deal is not a viable option. Why? It is hard to know where to begin. First, there is the economy. On this, the vast majority of businesses and the trade union movement speak with one voice—and that does not happen very often. I have been to meetings with businesses all over the country, and I have spoken to trade unions in those businesses, and I have taken notes of what they tell me. At the end of those meetings, one could almost rub out the identity of who was in the meeting and have the same read-out of their level of concerns. That persuades me that they have a very good point and a very strong case.
Only today, Carolyn Fairbairn from the CBI said that no deal would be
“a sledgehammer to the economy.”
Frances O’Grady from the TUC said that a no-deal Brexit
“would be a hammer blow to our manufacturing industries and the communities they support.”
A no-deal Brexit could be terminal for Britain’s manufacturing and the thousands of skilled jobs it provides. As the son of a toolmaker, I remember when manufacturing was in the doldrums, but now there has been a revival. Manufacturers operate a just-in-time regime that relies on open borders, and they do so successfully. No deal poses a huge risk to them.
I was dealing with the impact on manufacturing. Some of the large manufacturers have told us what the impact of no deal will be on them. Ford was clear that it
“would be catastrophic for the UK auto industry and Ford’s manufacturing operations in the country”.
Airbus used similar language, saying that it would be “absolutely catastrophic for us”. More recently, Honda said:
“If we end up with WTO tariffs, we’d have something like 10% of costs in addition on products shipped back into Europe”,
which would impact its “productivity” and “competitiveness”. This is not exaggeration. These are companies speaking about their businesses. This will impact on their businesses, and real people’s livelihoods will be at stake.
We do not have to only take the word of businesses and the trade unions, though it is a powerful voice. We can also look at the Government Benches. The hon. Member for Richmond (Yorks) (Rishi Sunak), who I believe is still a Business Minister in the Government, said that no deal
“would be completely disastrous for business in this country”—
no doubt because, like me, he has been talking to those businesses. He then took a novel approach to collective responsibility by saying:
“I am very happy to be public about”
the dangers of no deal
“and very happy if the Prime Minister decides I am not the right person to do the business industry job.”
He was backed up by the Business Secretary, who said
“no deal is fully acknowledged—certainly by me and the industry—as being ruinous for our prospects”—[Official Report, 4 February 2019; Vol. 654, c. 68.]
The Government’s own figures show that no deal would mean a reduction in the economy of between 6.3% and 9% over 15 years, and every region would be poorer—Wales by 8.1%, Scotland by 8% and the north-east of England by 10.5%. Anybody who votes tonight to keep no deal on the table needs to explain to their constituents why they are taking that risk with jobs and our economy.
What businesses are saying to me is that their key enemy is uncertainty. If they do not have certainty over the future terms of trade, investment decisions will continue to be postponed. There is certainty over those terms of trade if we leave the European Union on 29 March either with the Prime Minister’s agreement or moving to World Trade Organisation terms.
I have been concentrating on the economic issues, but there are wider issues in relation to no deal. There is Northern Ireland. The Secretary of State spoke about Northern Ireland, and we all know how serious the implications are for Northern Ireland. No deal is a risk to the Good Friday agreement. The Government’s own EU exit paper makes that clear.
The “EU Exit” paper from the Government last year said that
“WTO terms would not meet the Government’s commitments to ensure no hard border between Northern Ireland and Ireland.”
A hard border cannot be allowed to happen, and I do not think this Prime Minister or the Government would countenance that happening.
On security and counter-terrorism, as hon. Members know, intelligence and evidence passes across EU borders in real time every day and it saves real lives. That can only happen subject to agreements with the EU27—that is the basis for passing such information and intelligence—but we also need agreements to decide to what use we can put that evidence and intelligence and, crucially, to plan joint operations. I know that because for five years, as the Director of Public Prosecutions, I was part of that exercise in Eurojust. I know how seriously the Prime Minister takes this because I worked with her when she was Home Secretary, and she knows full well how that such provisions save real lives. A no-deal puts that at risk. No responsible Government would take that risk, and if they did take such a risk, they would not remain in government for long.
We have now got to a hopeless end, and it is a hopeless end. To lose by 230 votes eight weeks ago and then to lose by 149 votes is a hopeless end. The Government cannot just blame others for that; they need to look at themselves and ask why it happened. In those circumstances, both the things that we ruled out in our manifesto—the Prime Minister’s red lines and no deal—are the only things on the table, which is why we support a public vote, to protect against those outcomes. I am proud that we are doing that at this stage in the exercise, and it is obvious why we need to do so.
A no-deal would have a huge impact on our health service. It would put real strain on an already underfunded NHS, by disrupting medical supplies, access to medicines and the ability of hospitals to hire staff. Niall Dixon, the chief executive of the NHS Confederation, has said:
“A ‘no-deal’ without alternative arrangements to protect patients is simply not acceptable and could put lives at risk.”
Farming would also be badly hit. The National Farmers Union has been clear—I think it set this out this morning—that the proposed tariff regime would be a disaster for UK agriculture, stating that
“everything must to be done to avoid a no deal Brexit, and the catastrophic impact this could have on British farming.”
I am not quoting the voices of politicians here; I am quoting the voices of those in the field in each of these areas.
Finally, as if the Transport Secretary has not struggled enough already, imagine how he would deal with a no-deal scenario, which would bring chaos to transport. Hauliers would face hours of delay as new checks would be put in place at borders, and family holidays could be jeopardised by a no-deal Brexit as British travel companies lose their current access and rights.
For all those reasons and more, Labour will act tonight and oppose no deal. We support amendment (a), tabled by the right hon. Member for Meriden (Dame Caroline Spelman) and my hon. Friend the Member for Birmingham, Erdington (Jack Dromey), because we believe that it is the cleanest and clearest way for the House to express its opposition to no deal.
We recognise, however, that simply opposing no deal is not the end of the story. It is necessary but it is not sufficient. The House needs to have a chance to debate the steps necessary to move forward, and I think there is growing consensus that that needs to happen. The Labour party supports a close economic relationship with the EU and, as I have just said, we also support a public vote.
I accept the force of the point. The test will be tomorrow night, if it gets that far, when we hear from the Prime Minister at the Dispatch Box as to what her attitude will be. If it changes from the attitude of the past two years, we might be able to proceed more quickly to find that common purpose. We need to find that purpose, we need to find a majority for it, and it needs to be a sustainable majority, not just for one night or one week. That is what we should have done two years ago.
No deal should never have been an option. It is the worst possible outcome. Businesses know that, unions know that, and I suspect most of the Cabinet know that. It is extraordinary that the Government have acceded to a free vote on a matter of such importance today, and for them not to have a position on whether this country should exit the EU without a deal. It is the latest evidence of the Government not governing and that they cannot act in the national interest. I urge colleagues to support amendment (a). We can speak clearly and with one voice that this House will not accept leaving the EU without a deal, and we can bury that so deep that I hope it never resurfaces.
This is bizarre because it is also still not totally clear how, if the House votes as I think it will by a large majority to rule out no deal tonight, we propose to guarantee that we deliver that conclusion. It sounds as though more attempts will be made to reach an agreement. I have voted for it twice, but the Government’s withdrawal agreement is dead in the water. Any kind of agreement must now find alternative routes.
We will get there somehow in 16 days. Tomorrow, we will probably vote for an extension, but we have to be clear: extension for how long, and extension what for? The whole thing is dependent on 27 other Governments, all of whom are fed up to the back teeth with the state of British politics, and with trying to negotiate with a British Government who cannot say what they want because they cannot even agree internally on what they want. We depend on the approval of those 27 countries to avoid this disaster, so as we debate no deal, we must consider further things.
We will have no other method to follow. I will not go back into the legalisms. I had this discussion with the Attorney General, who kindly sent me his opinion. He is a much superior lawyer to me—I am a very out-of-date criminal lawyer—but I do not altogether agree with him. It is the advocate-general who has expressed doubt about whether we could be said to be acting in good faith if we revoked and then invoked again. I think that is very arguable. I think we would be acting in extremely good faith if we made it clear that we were in no state to leave and would invoke again if and when we decided what we were pursuing.
I do not wish to intrude on tomorrow’s debate, but we need to agree as quickly as possible what we are now seeking and the reason for the delay that I think the majority of the House is going to seek. It is important that we do that. Not only is opinion polarised here—lots of factions are pursuing their own preferred ways—but the public are even more polarised than at the time of the referendum. They hold the House in near contempt for the confusion they see, and the sooner we decide what the majority here wish to pursue as an alternative to leaving without a deal, the better, and to do that we may need some time. I have been calling for indicative votes for a very long time, and the Government have been resisting and avoiding them. The only way to proceed now is to explore and demonstrate the view of the House.
I have a suggestion for what might placate the public, satisfy a lot of leavers and remainers and command majority support across the House. If I was outside speaking on a public platform to a less well-informed audience, I would suggest reverting to leaving the political European Union and staying in the common market, which nowadays means the customs union and the single market, or something very much like it. I think that quite a lot of the public thought that that was what they were voting for when they voted leave. If we put that proposition to the public now, it certainly would not be as polarising as some of the arguments we are having inside and outside this House, which are having such a dramatic and catastrophic effect on the nation’s political dialogue.
I think that these problems are grossly exaggerated. I have never heard anyone argue against the EU trade deals that we have with other countries. The Japanese deal was a tremendous stride forward. It is the biggest free trade agreement in the world, and we are about to fall out of it after only a month or so. We talk about losing our powers, and about the threat posed to our sovereignty by the fact that we are not allowed to pass our own different laws on product quality, consumer protection, health and safety, animal welfare and the licensing of products, but I have yet to hear a Brexiteer advocate the reversal of any European regulation that we have passed so far. Members of the public tend to demand higher regulatory standards, and I am lobbied for new regulation more than I ever am for sweeping away what we have.
If the virtue of no deal is meant to be leaving to have a trade agreement with, say, the United States, I can tell the House that I have been involved in trade negotiations with the United States under President Obama, and it is protectionist. The Americans are not dying to open up any of their market to us; they will want us to open up our food market to them. We will not be making regulations here. The Americans will not let the House of Commons decide on animal welfare or food standards. Those are nothing to do with us. We made an agreement. The House of Representatives and the Senate, along with the powerful American food lobby, will decide what the welfare standards for animals and the standards for food should be. We will not get a trade deal with the United States unless we agree to that.
I am being drawn into the merits of the basic argument, but I think it should be underlined that we must look at realistic alternatives to no deal. No deal was not being advocated by anyone at the time of the referendum. I do not think that it was being advocated by more than a handful of people until a month or two ago. Most Brexiteers were not in favour of it. My right hon. Friend the Secretary of State is nodding. Even those who campaigned for us to leave were not campaigning for us to leave with no trade arrangement with our greatest partner. This is just an accident that has loomed because the House of Commons is not able, and the Government are not able, to solve problems in a way that we can agree with the other 27. We are drifting into it, which will be a catastrophe.
The argument is that these matters were settled by the referendum, but one of the problems is that the debate at the time of the referendum does not resemble the debates that we keep having, with ever more frequency, in the House. That is not because we are out of touch with the real world. It is because the referendum was conducted in the most bizarre, broad-brush terms, with the leading figures on both sides using ridiculous or dishonest arguments in order to make their case, which had nothing whatever to do with the merits or otherwise of being in the European Union.
Remainers, I am afraid—the key remainers, David Cameron and George Osborne—decided to raise all those fears of immediate catastrophe, which did not actually materialise. That has led people now to say that every future warning from every major business lobby in the country, from the Treasury, from the Government and from everyone else is to be ignored. That is a classic case of crying wolf: one day the wolf actually arrives, and we cannot conduct the government of this country on the basis that we ignore every expert piece of opinion we have, which most of us in fact agree with because we think their warnings are correct.
The referendum gets invoked in all our other debates, too. When I ask my constituents who are leavers—most of them, I am glad to say, voted remain—it is clear that the idea that they were expressing a view on the Irish border and the problems of the Good Friday agreement when they voted to leave, or that most of them were expressing any opinion on the single market or the customs union, is absolute nonsense. Indeed when I talk to members of the public now—who are all expressing anger about the state of affairs we are in—they are still not lobbying me about the Irish border and the single market and all the rest of it. We are having to be engaged in this because our duty is governance; our duty is the medium and longer term better governance of this country, and we have to address the real world of a globalised economy and today’s systems of regulation and the international order in which we have to earn our living against a background of bewildering technological change.
All the arguments about the damage to business and the threat to Ireland, including its constitutional position, and so on have already been addressed by others and I have agreed with every word that has been said. However, I want briefly to give my reaction to that handful—I think it is no more—of Members who seem to think now that no deal is positively desirable and that it is an objective we should have sought from the first. They make it sound very respectable by describing it as “WTO rules”, but I strongly suspect that many who argue that point had scarcely heard of the WTO at the time of the referendum, and I do not think most of them understand what WTO rules actually comprise. I will not go into too much detail, not least because I have not refreshed my own memory too greatly, but there is no developed country in the world that seeks to trade in today’s globalised economy only on WTO rules. They are a fall-back that cover all that international trade that is not governed by recognised free trade agreements. They are designed to ensure that there is no discrimination among countries with which we do not have an agreement. That is why they require a schedule of tariffs, to be accepted by the WTO, and then those tariffs to be imposed on all those countries with which there is no agreement. That means the EU is obliged by WTO rules, now much loved by Brexiteers, to impose the same tariffs on us that it imposes on other third party countries, and we are obliged to impose the same schedule of tariffs on the EU and all other countries with which we do not have a deal.
There are WTO rules that do not allow countries to abdicate a thing like the Irish border. We cannot say we are not going to put any border posts in, so we are going to have organised smuggling become the major industry of the island because we have no idea how we are going to enforce it all. Not only would the Republic be under great pressure from the rest of the EU, but WTO rules would require us to co-operate with policing our border, collecting tariffs, regulatory checks, customs checks and all the rest.
My main worry, however, is not entirely about these short-term consequences, catastrophic though they would be for some sections of our economy including agriculture and the motor industry. My main worry is that, whatever happens in the global economy, the effect of leaving with no deal in the medium and long term and on the comparative economic strength of this country will be that we and the next generation will be made poorer than we would otherwise be. That will be the result if we cannot move away from this no deal nonsense, and I hope a big majority settles that tonight.
Finally, I just want to be totally clear what the Government’s intentions and motives now are. I hope I have been reassured that, if we pass this motion tonight, the Government will in all circumstances take whatever steps it is eventually necessary to take in 16 days’ time to avoid our leaving with no deal. I do not want them to come back in a fortnight’s time saying to the House, “It’s your fault, because you will not vote for the Prime Minister’s withdrawal agreement, so sadly we are going to have to leave with no deal.” We are ruling this out. That really means having indicative votes to give us some idea of what the British are going to negotiate over the next two or three years. Failing that, it means revoking article 50. Speaking as someone who is a diehard European—
What a situation to be in—debating a no-deal exit. Next week, we will be 1,000 days on from the EU referendum. Today, we are 993 days on from it and, as the right hon. and learned Member for Rushcliffe rightly pointed out, 16 days away from exit day. It is a shame that the International Trade Secretary has left the Chamber, because Vote Leave backers told us that this would be the easiest deal in the world and that we had nothing to worry about. Well, like much else from those who backed leave, those promises were not kept. It is good that the DEFRA Secretary is in his place, because he must take a huge degree of responsibility for the mess that we are in today. Not only has he had the 1,000 days since the referendum; he has had his entire political life to plan for this, yet 16 days out, we are planning for the worst kind of exit—the kind that we were told would never happen because this would be the easiest deal in history.
Before an election or referendum, we are expected to publish manifestos, White Papers and discussion papers—you name it—so that those who win can be held to account for the promises they made, critically, before any vote was cast. That is a fundamental of our democracy. The mess that we are in just now—and it is a mess—shows why Brexiteers such as the DEFRA Secretary avoided scrutiny during the EU referendum. Then, after being presented with the cold, hard reality in government by civil servants who work hard and present the facts, the promises were denied, often by those who used to be in post, including some of the DEFRA Secretary’s former colleagues.
In the few examples where we have some concrete proposals, the promises were not kept. I am not just talking about the extra £350 million for our NHS that was never forthcoming, because the DEFRA Secretary himself promised that Scotland would get immigration powers. We need those powers, which would be good for our nation and good for the economy. I have raised that matter in the House on several occasions, as have my right hon. and hon. Friends and others, yet we are told that it is not a matter for the Government. The DEFRA Secretary is a senior Minister. If we cannot hold him to account, who do we hold to account for the promises that were made and broken? Who do we hold to account for Vote Leave? That is a basic part of our democracy, and our democracy has been let down badly. This is a situation of his making and he is responsible.
I was late to emojis, but they have come in handy. I do not know where I would be without the unicorn emoji. Any right-thinking politician worth their salt will have found it extraordinarily handy during this debate. It is the must have accessory for a decent-thinking politician in 2019. Here is a lesson: politics is about each and everyone one of us taking responsibility.
The DEFRA Secretary also said that the House has been good at saying no. I want to remind him and other Members about something to do with taking responsibility. After the vote, the Scottish Government took the responsible step and put together a group of experts—the SNP still thinks that it is worth listening to experts from time to time—including diplomats, academics, colleagues from other political parties with something to say and a former European Court of Justice judge, to consider the ways forward, and they came up with a compromise deal two and a half years ago. Did the Government respond to that deal? Nothing of the sort. It was the most thought-out plan for this mess and certainly a lot more than we have had so far. No wonder, then, that we are talking about no deal. The House should reflect on that and think about the economic disaster and the social impact on the future opportunities of our young people. Almost 1,000 days on, we are still discussing a no-deal scenario that should have been taken off the table the day after the referendum.
I noted the other night, with regard to the no-deal situation that we are in, that one Conservative MP—in fact, the longest-serving Conservative MP in the House—described the “headbanger” wing of the Conservative party. I am not sure what the names of the other wings are, but I was taken with that: the party’s members are talking about a headbanger wing, which must be a sizeable proportion of the party. While we are talking about no deal, I note the words of the Dutch Prime Minister, who is alleged to have said that a decision to vote for no deal was
“like the Titanic voting for the iceberg to get out of the way”.
The Chancellor seems to get this, and in his spring statement today, he talked about a smooth and orderly transition that would be threatened by no deal. He knows that it would threaten jobs and wages, yet we still debate it and we still have not ruled it out.
I am not sure which wing the Secretary of State for Scotland belongs to, whether the headbanger wing or some other wing, but he claimed the other week—I am sorry that he is not in the Chamber—that the SNP wanted no deal. I do not have his experience, but I remind him that the SNP was the first to come up with a compromise, as I have outlined; we were the first to ask for an extension; and last week, we even tabled a simple parliamentary motion on ruling out no deal. I know that the Tories are trying to turn democracy on its head and claim that defeat is in fact victory, as we have just heard from the DEFRA Secretary, but that is surely a step too far. We wanted to rule out a no deal, and he could easily have voted for our simple motion.
Let me remind the DEFRA Secretary—I hate to break it to him—that Tories lost the last election in Scotland, again. The SNP won the last election in Scotland, again. Guess what? Unlike the Tory party, we kept the majority of our seats, so if he wants to talk about democracy and winning, he is welcome to take some lessons from us. On negotiating tactics, if we are in a situation of no deal and hearing what the Chancellor said today, it as if the Prime Minister has shot herself in one foot, then wants to shoot herself in the other foot, just to show everyone how terribly serious we are.
Today’s trade tariffs will hit our industries, not least the food and drink industry on which jobs in my constituency and others rely and for which the DEFRA Secretary has responsibility. [Interruption.] The Trade Secretary is back. He promised that the UK would
“replicate the 40 EU free trade agreements that exist before we leave the EU so we’ve got no disruption of trade”.
Secretary of State, how is that going? Not going well? No, it is not going well, is it? This is not just a political problem for the Conservative party, as Ministers seem to suggest—it is a problem for public services; it is a problem for jobs; and it is a problem if we want to look forward to the future. It is not just a Tory civil war that is being waged among Tories—it is a problem for us all.
On public services, this Government are spending £4.2 billion on preparation for a no-deal exit, which we could have taken off the table 1,000 days ago. That is £4.2 billion that is not going into hard-pressed public services. It is £4.2 billion that is going into Government mess-ups—ferry contracts that we do not need. Public services will be further hit by a no-deal Brexit and overall by Brexit. This will hit the most vulnerable people in society. It will hit our public services, which have already been dealt a blow by a decade of austerity from parties of every colour in this House.
“Making an equivalent mistake”—
and not preparing for no deal—
“would constitute a serious dereliction of duty by the present Administration.”
It is strange that all we hear about now is not the benefits of Brexit; rather, we are limited to Ministers telling us that it will not be that bad. I heard one of the increasingly poor excuses last night, which was that we are in a Parliament of remainers. I am a remainer whose constituency and nation voted to remain, and it certainly does not feel like a Parliament of remainers to me. The extremists will never be happy.
This is about damage limitation. The Brexiteers, including the Secretary of State for International Trade and the Secretary of State for Environment, Food and Rural Affairs, have blown it. I will not vote to make my constituents poorer and less well off because of their mistakes. Let me remind them that it is through the single market that we are wealthier, through its rules in areas such as workers’ rights and parental rights that we are fairer, through joint action on climate change that we are greener and through work with the European Medicines Agency, sadly departed, and air-quality agreements that we are healthier.
The impact is being felt now. Even yesterday, a report showed that £1.2 trillion—an eye-watering sum—had been relocated from the UK, mainly to areas like Dublin. It is no wonder that similar-sized independent and sovereign states such as Denmark, Ireland and Finland see their futures as part of the European Union.
I hope that the right hon. Member for Meriden (Dame Caroline Spelman) will press her amendment to a vote tonight. That is important because we need to have no deal taken off the table, given the untold damage that it will do to public services and to our democracy. We have two different views. One is of a state being like our neighbours, and being joined, pooling our sovereignty and working together as an independent sovereign state. The other is of a UK that is isolationist, poorer, more remote and going backwards. Nothing emphasises that more than the fact that the Government have not taken no deal off the table. Let us push the amendment and take no deal off the table tonight.
A constituent who lives in Chelmsley Wood, a large council estate in my constituency, wrote to me yesterday. This is what he said:
“Tonight I am in disbelief how 391 MPs have a complete disregard towards the will of the British people and over 17.4 million votes in 2016…I wish you could read this email in parliament. I have some strong points as a citizen of this country, the public ‘17.4 million’ we are nobodies, we do not matter, we are just a tax code number, we do not count, we do not have any rights in our democracy and our democracy in this country is now proven to be dead.”
These are his words.
“There is constant talk of a 2nd referendum…or no Brexit at all…In 2016 I and all my family voted in the referendum. We were promised this was a once in a lifetime opportunity and more importantly our vote mattered. The UK had the biggest turn out in history with over 17.4 million giving the instruction to leave the EU…Mrs Spelman I can tell you this (and wish you could read it to all MPs), I’m done with voting. As are my family and in conversation on social media tonight many of my friends are done with voting too.”
This constituent has never contacted me before. I do not agree with everything that he has said, but, my goodness, those words did resonate. I may not agree with him, but I do believe that if this House cannot back a deal that takes us out of the EU, we will be letting millions of ordinary people down. Quite frankly, we do not deserve their votes if we do that.
The House knows that I do not support the UK leaving without a deal in place. It would be disastrous for the economy, especially in my region. The manufacturing industry employs very many people in the west midlands and has given many young people that start of a well-paid skilled job. We are already losing jobs in my region, in part through Brexit. Now, more so than ever before, we face the real possibility that we might leave without a deal by accident. If that comes to pass, we will all bear some responsibility.
The Secretary of State for the Environment did set out clearly what the consequences are of leaving without a deal and it was good to hear that from him. The stark reality of this is revealed by the Government proposals on temporary tariffs if we leave without a deal. Already the automotive sector is telling me that this regime would thoroughly undermine manufacturing in the UK. It said that the proposed rates are
“damaging, divisive and add extra complexity.”
Of these proposed tariffs, the automotive trade body, the Society of Motor Manufacturers and Traders, said that the move does not resolve the devastating effect of a no-deal Brexit on the automotive industry. No duty-based measures could come close to compensating for the disruption, the cost and the job losses.
This House has demonstrated clearly that there is a majority against leaving without a deal. The Government accepted that and said that they cannot take us out of the EU without a deal without the explicit consent of Parliament. I am really pleased that the Prime Minister has brought forward a motion to rule out leaving without a deal on 29 March.
The opportunity afforded by the Government motion of obtaining a really large majority in this House against a no-deal Brexit is greater than that afforded by my amendment, which was carried on 29 January. I really appreciate the offers of support from other parties, but I will be withdrawing my amendment. We cannot just be against something; we must say what we are in favour of. I hope that the result of tonight’s vote on the Government motion will reassure my constituent that we have heard him and that we are capable of working together to deliver his hopes for our nation.
May I gently say to the right hon. Member for Meriden (Dame Caroline Spelman) that she cannot withdraw her amendment? Her amendment has not yet been moved. Her amendment is, frankly, in the hands of the House of Commons. If she puts forward an amendment and then chooses not to move it, that is for her judgment and people will make their own assessment of that. It is perfectly possible for other signatories to it who do stick with the wish to persist with it to do so.
I come now to the point of order of the right hon. Member for Broxtowe (Anna Soubry).
Today is the moment when two and a half years of repetition of that nonsensical slogan “No deal is better than a bad deal” will finally be defeated in its fight against reality. It was always a slogan; it was never a policy. That is why the Prime Minister will have to vote against her own slogan when she comes to the Division Lobby tonight.
The arguments for rejecting no deal are really very simple: it would inflict the greatest damage on our economy; it is strongly opposed by businesses and trade unions; and it would mean a huge step into the unknown, the chaotic and the potentially dangerous.
“It is possible to envisage scenarios in which ‘no deal’ might be better than a bad deal, as the Government has suggested; such as, for example, if the eventual proposed agreement only involves payment of a large sum to the EU in settlement of UK liabilities, with no provisions for any preferential trade arrangements or transitional arrangements towards a mutually beneficial future relationship.”
“This tells us everything that is wrong with a no-deal scenario…This is no way to run a country.”
The Society of Motor Manufacturers and Traders said:
“No-deal would be catastrophic for the automotive industry. It would end frictionless trade, add billions to the cost of manufacturing and cost jobs.”
We know why.
A professor from one of our major institutions of higher education, whom I happened to bump into on the underground this morning, said to me that no deal would be “catastrophic” for the institution, its research funding and its ability to recruit staff. The truth is that these conversations are repeated in thousands of workplaces up and down the country, in thousands of sectors of the economy. That is why the twelfth report of the Brexit Select Committee said explicitly that leaving with no deal
“cannot constitute the policy of any responsible Government.”
If Members want to read the argument, they can go and look at that report, but I draw attention to the problem faced by a company that makes signs and exports them to Europe to be fitted by its workers. The company asked me what would happen in the event of a no-deal Brexit. I have referred to that in a previous speech. Since then, I asked a written question, to which I received the answer:
“UK nationals travelling to the EU for the purposes of work may be subject to extra conditions. Businesses will need to check individual Member State immigration rules for whether there are any requirements or conditions around supporting documentation, work permits or visas. Businesses should also check whether there are any restrictions on the provision of services, such as whether a UK professional qualification is recognised in the country in question.”
What use is that reply to a business that has worked hard to create jobs? There are those in this House who will stand up today and argue that that business’s future should be thrown into doubt, but what use is an answer like that? It basically says, “You’re on your own.”
The final point I want to make is this: given what happened yesterday, today’s vote is the next step required before tomorrow’s inevitable decision to apply for an extension to article 50, which the Brexit Select Committee report—it was published this morning with commendable speed after the events of last night—says will be necessary. Given the rather unhelpful coda, if I may put it that way, to the Government’s motion tonight, I think the House will vote to reject a no-deal Brexit on 29 March this evening, but Ministers need to recognise, be aware of and acknowledge that this House will never vote to leave the European Union without a deal, whether at the end of March, the end of June or the end of October. We are not prepared to take that risk with our economy, our jobs and the livelihoods of the people we represent—not today and not ever.
I am conscious that some who will support this amendment are sanguine about an immediate no-deal Brexit, so I should set out my own position. I think that no deal on 29 March would be a disaster for the economy of the country, a particular threat to manufacturing industry, and, in practical terms, a particular threat to the day-to-day lives of my constituents and everyone else in east Kent. That is why I oppose it.
As I hope I have made clear, I am as keen as anyone to reject an immediate no deal. I will support the Government’s motion this evening. Indeed, this amendment is deliberately designed not to replace the Government’s motion, as many amendments do, but to act in addition to it. But this House should not deceive itself. Voting against no deal does not mean that a deal will magically emerge. This House has to agree a deal, and that deal needs to be acceptable to the EU. We can pass motions ruling out no deal until we are blue in the face, but it will make no difference unless there are options that this House will support. That is a piece of realism that the House has not yet fully addressed. I voted for the deal last night, and indeed in January, and I am happy to assure the Government that I will do so again if they wish to try one more time.
More broadly, I campaigned for remain, but I respect the result of the referendum. I therefore draw the conclusion that I should vote for a deal that delivers Brexit. My principal aim in all this, and the aim of those of us who support this amendment, is to make sure that Brexit is as smooth as possible for the citizens and businesses of this country. This seems to me to be an honourable aim whatever view you took during the referendum. It is a view you can hold if you believe that Brexit is the best opportunity Britain has had for generations, or if you believe that it is a mistake whose damage has to be mitigated. From both those viewpoints, you can arrive at the same practical conclusion.
That practical conclusion is what lies behind amendment (f). It has four separate parts. I was grateful that the Prime Minister accepted at least two of them in full earlier today at Prime Minister’s questions.
The first one that the Prime Minister accepted, and which the Government have already implemented, is the publication of the tariff schedules that we will need. I make no comment on the individual merits of each schedule—those are clearly a matter for legitimate debate—but the need for information as early as possible is paramount, and I am glad that the Government have taken that step, which is urged in the amendment. The second one is unilaterally guaranteeing the rights of EU citizens resident here. That has been a desire of Members on both sides of the House since the referendum, and I am glad that the Government are on board with that.
The third key element of the amendment is that the Government should seek an extension of article 50 until 22 May—the latest date possible to avoid European elections, the prospect of which brings out the Brenda from Bristol in all of us. That would be a useful delay, and it would give business more time to prepare for the new tariff regime.
The fourth and largest part of the proposal is to offer money and standstill agreements in a range of areas to the EU, in return for a period between now and December 2021 in which we could negotiate the future relationship. In other words, it provides a gentle glide path to that new relationship, instead of the cliff edge that might otherwise threaten us. The future relationship is, of course, much more important than the withdrawal agreement, which this House keeps turning down. It will decide our future prosperity and security. This amendment focuses on that long-term goal, given the obvious difficulties of the short-term goal of a withdrawal agreement.
I know the objections; I have heard them. The first is that Monsieur Barnier has already said that he will not have it. It seems to me that if we do not proceed on a path just because Michel Barnier has said he will not have it, we will never get anywhere in these negotiations. The second is that this is a managed no deal. As I say, I would much prefer a deal, but if we cannot sign one, it is better to have a plan B that avoids chaos and gives us years to craft a proper trade deal as part of a future relationship.
I urge colleagues on all sides, whatever their views on wider European issues, to look favourably on this amendment. We live in a free vote world these days, so if necessary, they should ignore their Whips—they can be nice to them tomorrow. We need ways out of this impasse. This is one.
Police officers who are midway through important investigations to stop serious criminals and organised gangs operating across borders have no idea whether the European arrest warrants they have out on those criminals are about to ripped up, which would mean they had to start again. Border officials who rely on European criminal databases to screen, with the flick of a passport, for sex offenders, child traffickers or organised criminals do not know whether those databases will be denied to them.
We should be standing up for British manufacturing and ensuring that it has a level playing field to compete in the world. Instead, no deal would be a hammer blow to the heart of our manufacturing base. In my constituency, we have manufacturers such as Haribo, which depends on ingredients from abroad and does not know what delays it will face; and Burberry, which does not know whether its goods will face tariffs as a result of no deal. Are we really going to say to small businesses that depend on imports that their livelihoods could be at stake because this House is prepared to accept no deal in just two weeks’ time? Think of the florist who gets up early in the morning to collect a delivery, before any of us are even awake, who does not know whether they will be able to get their supplies and whether they will be able to trade. That is why we have a responsibility to say that we will not accept no deal on 29 March.
The Government have tried repeatedly to get their deal through, and they have failed, so we have to face up to what the default position should now be. The Environment Secretary said very clearly in his answer to me that, if we do not have a deal in place, the vote tonight will mean that the default position is no longer leaving the European Union with no deal on 29 March. I would really appreciate it if the International Trade Secretary could confirm that when he speaks tonight, because there have been different and confused interpretations, and it is really important to be clear.
The reason why we asked for and sought these debates was to be clear. We have a responsibility now—two weeks before Brexit day—to be clear about the default position. The Government have maintained for all this time that the default position is no deal, but that is not on any more. We have to decide now and vote tonight to change the default position: to say that we will no longer have no deal as the default position because it is too irresponsible. Tomorrow, we will take decisions on the way forward.
We will then need to move to the issue of what happens tomorrow on the extension of article 50. That has to be an extension for a purpose. It cannot simply be for more of the same, with the Prime Minister going back to Brussels, saying the same things about changing the backstop and having the same discussions we have already had many times before. We cannot just have the same meaningful vote on the same things when they have been rejected, so it has to be for something different. I would say to the Government that I think they should now put forward a timetable and a process to make some proper decisions on what the future partnership will look like. We still have no idea whether this is going to be Norway or Canada, or nearly Norway or close to Canada. We have no idea, and the Government have never come forward with that so that we can have proper debates and proper clarification.
Two big failings underlie what the Government have done: they have never sought consensus—the Prime Minister has never sought consensus and never sought to build agreement—and the Prime Minister has never sought clarity. She has deliberately sought a political declaration which simply fudges the future and gives us no clarity. We need clarity and we need consensus. That is why we should have a series of indicative votes. The Government should themselves put forward their own negotiating mandate for the future partnership and the future relationship, which we can then again have votes on and amend. That would actually give this House the chance to make some decisions about how we get clarity on the way forward, and also about how we get consensus on the way forward.
Whatever our different views about what the right position should be, I hope that this whole House can come together to rule out no deal. The Government’s basic responsibility is to keep this country safe, to make sure people can afford their food bills and to make sure that those who are sick can get their medicines. All of those are put at risk if there is no deal, and we should reject it tonight.
I fear that Parliament has set us on a dangerous course. We are in real danger, today, of signalling to the European Union and others that we are too scared to leave without a deal and, tomorrow, of ordering the Prime Minister to go on her hands and knees, and cap in hand, to Brussels—
We may be ordering the Prime Minister to go cap in hand to the European Union to beg for an extension to article 50, and we do not know what counter-offer it may make. It may demand that that extension must be for two years, and it may demand a large financial charge for that extension. It may even say that it will not give an extension, but that it is open to us to revoke article 50. Members in this House may face a very difficult, very uncomfortable decision in just a couple of weeks’ time.
I believe that we must be willing, if necessary, to take our freedom first and talk afterwards. We know that the European Union—I worked closely in a lot of the preparations for no deal—is already seeking what is, in effect, an informal nine-month understanding.
There have been a number of points over the past two years when I think the Government could have reappraised their approach to the negotiations. Personally, it became clear to me a year ago, at the point at which the implementation period was agreed, that our negotiations were getting into a little bit of trouble, and that we were in danger of drifting along a path of least resistance, only to find that we had an agreement that Parliament would not accept. At about that time, something else interesting happened.
On 22 March last year, when I was visiting Oslo for some fisheries negotiations, our then ambassador to Norway told me that she had had a busy week, because she had been placed on standby by the Foreign Office to deliver a letter by hand to the Norwegian Government giving 12 months’ notice of our intention to quit the EEA. In the end she was stood down, because of the transition agreement, and this country took a conscious decision not to give notice of an intention to quit the EEA.
That made me curious, because up until that point, and indeed since, the Government have always maintained that when we leave the EU our agreement under the EEA will automatically fall away. If that were true, and if it were the only possible interpretation of the EEA treaty, why was our ambassador armed with that letter to deliver to the Norwegian Government? After much probing, I established that there is indeed more than one interpretation that could be adopted, and the Foreign Office was concerned that, in the absence of giving that notice, we could be subject to challenge under the Vienna convention.
For me, that opened the prospect of a different approach: relying on our existing EEA membership, asserting our rights under that treaty, and simply applying to join the EFTA pillar of the EEA agreement. That arrangement means we would have had no customs union; control of our fisheries and agriculture policy; an independent trade policy; no need for an implementation period; no need for a backstop; and no need to worry about whether we have a codicil or a protocol, since we would be able to quit at any time, with 12 months’ notice in writing.
I have tremendous respect for my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) and was initially very encouraged when he picked up that idea and ran with it. However, as hon. Members who know him will know, he also has a tendency to overcomplicate things, so a simple and clean EEA model that could have given us an easy pathway out of this became Norway-plus, then the customs union 2.0, and then a backstop was added as well. The result is that it has alienated many Members on the Government side of the House who might otherwise have supported it.
In conclusion, my view is that, first, we need to unhitch the customs union and the backstop from any proposal based on our existing EEA membership. That might require us to be ready to leave without an agreement. Secondly, we can dynamically align our regulations over the next nine months. Finally, we can have the dynamic alignment as a bridge to a new arrangement in which we apply to join the EFTA pillar.
Yesterday only 242 Members voted for the Prime Minister’s deal. Today a different and probably rather smaller number will vote to leave the European Union without a deal. According to the Prime Minister’s use of language, both votes deliver the will of the people. The Brexit camp cannot agree what the will of the people is.
It is alarming that Members on the Conservative Benches have given up the argument that leaving the EU is good for the country. The only reason they put forward is that we have to respect the will of the people. Surely that means that they should support every Brexit vote, but they do not do so, and the reason for that is that they are reading into the referendum result their own opinion about Brexit, which has nothing to do with the will of the people. The will of the people is a fig leaf for Members in this House to pursue their own Brexit agenda. We need to see the mantra of the will of the people for what it is: a false argument. It is fake.
There is now a majority in the country for staying in the EU. I am on their side, along with my Liberal Democrat colleagues, the Scottish National party, Plaid Cymru, the Green party and the Independent Group. We are united in our view that our future is in the European Union. We stand for peace, collaboration and solving problems together, including the big issue of climate change. Although we represent at least 50% of the people of this country, our side of the argument has been completely sidelined in the past two and a half years. It is now time for Parliament seriously to consider the possibility of staying in the European Union.
In January the Prime Minister’s deal was voted down by 230 votes. Yesterday almost the same deal was voted down by 149 votes. At least 40 Members have changed their minds within two months, not because the deal has essentially changed but because it has been clarified, amplified and explained in more detail. The 2016 referendum took place more than two and a half years ago. Many things about the EU and our membership have been clarified, amplified and explained. The people’s vote coalition on our Benches understands that in a democracy people can change their minds and have a right to do so, just like MPs in this House.
On the false pretence that it is the will of the people, let the Conservative party and the Labour party stand for Brexit. We are standing up for the UK remaining a member of the European Union and for the right of people in this country to have a final say and to change their mind if they so wish.
May I start by telling my hon. Friend the Member for Camborne and Redruth (George Eustice) how much I appreciate the time and service he gave? It is a great pity that he is no longer in post, for reasons he has made clear.
I say to my right hon. Friend the Secretary of State for International Trade, who is sitting on the Front Bench, that I clearly cannot support the idea of taking no deal off the table, because I have always believed that ultimately that is not up to us, unless, as my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) has said, we are prepared somehow to revoke. If we are not prepared to revoke, we will put ourselves in the hands of the EU, which may decide that it does not want us to extend. Where would that leave us? It would leave us having to leave without the withdrawal agreement. The idea of no deal is a bit of a misnomer, because in actual fact a whole series of things are taking place right now in the EU and even here that amount to deals, arrangements and agreements. I will not go through the list, because time is very short.
That is why I put my name to amendment (f), which was tabled by my right hon. Friend the Member for Ashford (Damian Green). I fully agree that it is not perfect but it seeks to find a way in which hon. Members with completely different views can come together, recognising that the people voted to leave and that our job is to deliver that. Is there a way to deliver it if there is not the chance of an agreement?
I do not believe that the Government’s deal is dead. What made it almost impossible for some of us to vote for was the Attorney General’s paragraph 19, which seemed to contradict the Deputy Prime Minister’s comments the night before. That is why the Malthouse compromise has gone forward. It covers both categories—making the deal, or being unable to make the deal—and that will allow us to reach an agreement.
The key is finding a way to replace the backstop as it exists now with alternative arrangements, which are listed in amendment (f)—I will not go through them now. My right hon. Friend the Member for Ashford is correct to say that we have essentially asked for four elements, behind which lie a great deal more detail that has been discussed in a series of meetings with my right hon. Friends on the Treasury Bench. We reached what I thought was a pretty good agreement. I credit the Prime Minister and others for having bound in those alternative arrangements. They were not bound in absolutely but they did make big progress in the deal she laid on the table, which will help enormously, because if we replace the backstop with the Malthouse alternatives, we get rid of the risk of the backstop being an imprisonment or an entrapment. It would become customs arrangements that allow all sides, including Dover and Calais, to trade successfully without too many problems. That is really the point.
I know that some of my colleagues are concerned—rightly—about extending for the sake of it. I am not in favour of that. In any case, I believe that will be rejected by the European Union because there needs to be a purpose. The point of the extension we propose is to meet the practicalities of getting the arrangements in place ready for the process of managed withdrawal without a withdrawal agreement. I would not vote for an extension with no purpose because all we will do is kick the can do the road, as the Prime Minister has said, ending up with exactly the same decisions to make only a few months later.
I recommend the Malthouse process because it allows us to manage the process of leaving carefully with practical solutions, as my right hon. Friend the Member for Ashford laid out. It allows us a period of time in which to create that. I recommend it to my hon. and right hon. Friends and Opposition Members. If we come together and vote for amendment (f), we offer two things: the opportunity to get an arrangement that allows us to leave with a withdrawal agreement or, in the event of not having such an agreement, we can manage the process of leaving in a way that takes away the fear of having no deal.
Conservative Members do not own the national interest. It is not the same as nationalism. We all care about the national interest very deeply. I do not know how the Secretary of State for Environment, Food and Rural Affairs could stand in front of us today and tell us how our food prices would go up, and how it would be awful for agriculture, and then not move every fibre of his being to end it.
The right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) talked about revoking, but let us be serious. If we cared less about being elected and more about the national interest, we would be having a deeply serious conversation about making this stop and talking about the things that people where I live talk about. Others have touched on the will of the people. We in this House are terrified of the people in this country. Why are we so terrified of them? People in this place say: “17.4 million think this because I think this and I am going to lay my opinion on to them”. We have nothing to be scared of because we have a responsibility to inspire people out there and to lead them somewhere. What has been missing from the very beginning of this horrid and torrid affair in British politics has been any semblance of the leadership and courage needed to take the country somewhere.
The reasons people voted leave are plentiful, and I will not pretend they all agree with me, but I am not scared of the people who voted leave in my area. I believe in parliamentary democracy, and if they do not like what I say, they can get rid of me. I am not frightened of that prospect. I only wish the Prime Minister had not been frightened of the people sitting behind her. She is certainly terrified of the people in the country. In the event of a no deal, people where I live will face not only the same levels of poverty and the same unstable jobs market, but much, much worse; they will be unable to afford food, which they can precious little afford now, and they will look up and say, “I thought there was going to be a golden era”, and then they will be angry. That is what people in here should be scared of. We should not be scared of the country.
I respect deeply the people where I live, but I notice how selective the ERG are when it comes to caring about their needs: they want them when they back up their idea of northern town leave voters, but not so much when they need to give them welfare.
I am not here to recreate the arguments of the referendum. The public are heartily sick of Parliament’s going over and over the same arguments in which we have engaged for three or four years now, in the run-up to the referendum and subsequently. They expect us to be purposeful, serious and sensible, and to sort out the issues and problems arising from the decision to leave the European Union. That is exactly what we should be doing, and I come here in that spirit. I understand that remain voters have real concerns, although I think that some of them are exaggerated. It is up to us, working with the Government, to show that all of them can be managed and that there are many upsides, to which we are looking forward and which leave voters clearly had in their minds.
I want to reassure the House. Calling certain views certain names is not helpful to a grown-up debate. It is not a no-deal exit that we are talking about; it is a many-deals exit. As we have just heard from my hon. Friend the Member for Wycombe (Mr Baker), a series of measures have been enacted recently in the European Parliament. On both sides of the channel, serious work is being done to ensure that lorries can move and planes can fly. Goods will move across borders, and there will be an understanding about what happens in relation to customs and other checks. The drugs will come in, and the food will come in.
I think it is quite wrong to scaremonger and frighten people by pretending that none of that work has taken place—that German pharmaceutical companies will refuse to send their goods any more, or that the workers at Dover will get in the way and block them from coming in. It is not going to happen. We have heard very good news from Calais and Dover about all the work that has been done at both ports to make things work.
So let us come together and be practical, and let us understand that certainly all Conservative and Labour MPs were elected to this 2017 Parliament to get Brexit through. We all stood on national manifestos that said we would do that. The public cannot believe that so many Labour Members in particular are now saying, “We did not really mean it; we do not care about that; we want to stop it; we want to delay it; we want to redefine it in a way that means it is no longer Brexit.”
Brexit means taking control of our own money and then being able to spend it on our priorities, and the sooner we do that, the sooner we will have the boost to our economy which taking that measure would bring about. It means having tariffs that make sense for British industry, and for importers who might like some tariffs to be removed. I am very glad that my right hon. Friend the Secretary of State has slashed tariffs from a load of imported goods that do not involve our competing actively in the United Kingdom. That will be better news for all the consumers who will not have to pay those tariffs any more once we have our own tariff schedule.
I have a big idea for the Government. I entirely understand that very many people in this Parliament want a bigger deal, or more deals, than what is currently on the table. My idea is that, even at this late stage, the Government should offer the European Union a comprehensive free trade agreement based on the best of EU-Canada and EU-Japan, perhaps involving more services, because we already have alignment with services. If the EU would agree just to talk about that—as I suspect it would—we could leave on 29 March without having to impose any new tariffs or non-tariff barriers on each other, and proceed, under GATT 24, to negotiate a free trade agreement. That, I should have thought, would unite a lot of moderate remain voters with most leave voters, and I strongly recommend it to the Government. Parliament must allow us to leave on 29 March, otherwise it will be the people against the Parliament.
Amendment (c), which stands in my name and those of my hon. Friends, seeks to extend article 50, and it seeks a referendum.
I want to refer to some of the problems we foresee for my country if we follow the no-deal course. It would of course endanger public services and put people’s health at risk. According to Welsh Government analysis a no-deal Brexit would wipe £5 billion off the Welsh economy, meaning fewer jobs and lower wages. Some 60% of Wales’s exports go to the EU; in that respect, we stand out among the countries of these islands in that we have an exporting economy.
With the economy in decline under no deal, public services would be endangered in Wales. The number of EEA nationals in the social care workforce in Wales has grown by over 50% since 2011; without a deal, EU citizens’ rights to work here will be in question, at best, putting further unwarranted pressure on the NHS and the social care sector.
On health, people in the UK rely heavily on medicines imported from the EU; for instance 99% of the insulin used in the UK is imported, largely from the EU. The British Medical Association has estimated that no deal could lead to delays of between 12 and 24 months for life-saving drugs.
One concern that I have raised in the House—I did so last week—is the effect on agriculture. NFU Cymru president John Davies said this afternoon:
“There can be no doubt that a ‘no deal Brexit’ would be incredibly damaging to the Welsh agricultural sector and that eventuality should be avoided at all costs.”
In that respect, he agrees entirely with Glyn Roberts, president of the Farmers Union of Wales. We have two farming unions in Wales, and on this they agree.
The Secretary of State for Wales puts great store by saying he is the voice of Wales in Westminster, and he has the opportunity tonight, given that there is apparently a free vote, to stop playing games and come out strongly against the calamity of no deal.
I find it genuinely very troubling that as we come closer to the crunch there seem to be more and more people who may previously have advocated a deal but, not seeing that there is a deal around, suddenly decide that no deal is the option because they cannot get what they want or the form of deal they might desire. It is an extraordinary form of frenzy: they smash up the china first, and when they are not satisfied with the china they have smashed, they decide to smash some more. That is what we are facing, and it is my duty to do everything I possibly can to prevent it, and I will continue to do that for as long as the opportunities for doing it present themselves.
I do not want to dwell on the risks of no deal in practice because I do not wish to repeat what others have said perfectly eloquently. So then we turn to this process, and I simply point out that it is very unfortunate that instead of what I understood yesterday would be a clear opportunity for this House to express itself against the principle of no deal and make clear that we do not want it before moving on tomorrow to discuss what we might do to prevent it, which is a real issue, the Government have tabled a motion that gives the distinct impression that, like children, we will be offered the same pudding, if not eaten at lunchtime, at tea time, supper time and now for breakfast, when it is perfectly clear that this House has rejected this pudding in its totality.
As a consequence, something that might bring us together in reasoned debate has started to be undermined by a suspicion that the Government are interested only in forcing a binary choice between no deal and accepting their agreement. Listening to the Secretary of State at the Dispatch Box earlier, I began to realise that perhaps that was not the case, but then why was the motion ever tabled in this fashion? I cannot understand that. In fact, the amendment tabled by my right hon. Friend the Member for Meriden (Dame Caroline Spelman) was correct in trying to identify and deal with that mischief.
The Government have a point, however. I agreed with a lot of what the hon. Member for Birmingham, Yardley (Jess Phillips) said, and there is an issue here. This House has lived under the protection of our party system for a long time. I am now beginning to see a distinction on my Benches, and actually on the other Benches, between those of us who have in a sense exposed ourselves and as a consequence get a huge amount of threats, flak and invective, and those of my colleagues—I do not include the Prime Minister in this, because she has many a burden—who are hiding behind the party system to avoid making the difficult choices. We cannot go on doing this. The party system might restore itself—I rather hope that it does—but as things stand at the moment, it is blown to pieces.
We have to make the decisions. Are we going to find a motion to accept the Prime Minister’s deal being offered up again? I do not want that, because I think that it is a poor deal, despite her best efforts. Are we going to find some other deal? Or are we going to revoke? Revocation is not something that I would wish to do without going back to the public, because in the light of the referendum, that would be a rather draconian and dangerous step. However, we will have to address that question because, otherwise, we will go round in circles and the Minister is right to say that we will eventually run out of time. We will simply have pushed back the cliff edge. We will have to resolve this, but at the moment, the Government are not helping by tabling motions of this tendentious character. I really urge my colleagues on the Front Bench to face up to their responsibility and to ensure, first, that we get some clarity from them tonight, and secondly, that we can take this debate forward.
The desire to create such chaos, and the exhilaration that comes from it, is perhaps understandable in those who will not be affected by the results—those who can move the investments they might be lucky enough to have to Ireland, to take a random example—but this is certainly going to hurt our constituents, who are in many cases already struggling to get by. It is even more shocking that this is being deliberately embraced at a time when we know of the illegalities associated with the leave campaign and the evidence of Russian interference. I was looking at Twitter a few moments ago. As we are here debating no deal, people like Aaron Banks—the biggest donor to the leave campaign; the biggest donor ever in British history—is busy going round the European Governments and lobbying them to block any UK request for an extension of article 50. So let us be clear that we are being played for fools here and that we will be responsible for this if we do not wake up and notice it. And the Secretary of State for Environment, Food and Rural Affairs has some gall to stand at the Dispatch Box as though he is completely independent of all this and as though he is not complicit in it and was not an architect of it. That is the height of absolute shamelessness.
We have heard so much about the economic costs of a no-deal Brexit, and the effect on constituents in Brighton will be no exception. I have been lobbied by so many individuals, families, businesses and universities. The University of Sussex, where one in four staff is an EU citizen, is already having problems with recruitment and retention, research grants and so on, and the same goes for both big and small companies.
This is about much more than the economy, however. I worry that a no-deal Brexit would make it harder even to begin to address some of many reasons why people voted to leave in the first place. Of course, people chose to vote to leave for many different reasons, but a good many of them were voting to say that the status quo is intolerable, that the inequality in this country is grotesque and that they want their communities to have a say in the future. The idea that any or all that will be easier to address if we leave with no deal is fanciful and irresponsible.
We need an honest conversation with the people of this country. We need to level with them. We need a new social contract, better jobs, higher-quality public services and investment in the green economy. We need people of all backgrounds and communities to be treated with respect and given the opportunity and the power to thrive. We need genuinely to give back control to people. We need to put young people at the heart of all this. We need that kind of future. We need a green new deal, not the Prime Minister’s failed deal or, worse still, no deal.
My right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) spoke at length, as he is wont to do as Father of the House, and I respect him for his consistent opinion on the European Union. He mentioned that the referendum was three years ago, which seems a long time, but he led the remain campaign in the east midlands while I led the leave campaign. I remember well that we debated, we were on television, we were on the radio and we went out to hustings, but when the votes came in at the end of the day the result was 59% to 41% in favour of leaving the European Union. He is right that his seat voted to remain, but it was one of few in the east midlands to do so, and I am disappointed, as will be the people of the east midlands, that he is treating that democratic decision so badly that he would invite us to revoke article 50 and go against the will of the British people, to whom this House decided we would give the decision in a referendum.
We have heard nothing about the Government’s preparations for no deal, which have been played down. Some 9,000 civil servants are working on no-deal preparations, and the Treasury has allocated £4.2 billion of taxpayers’ money to prepare for no deal. The preparations are moving forward. Business has been told that we are leaving and to prepare for no deal on 29 March. We have seen on the news that the Government have reserved warehouse space for extra stock. All that cost has been incurred by our country.
If we leave on 29 March—business does not like uncertainty, we know that—we end the uncertainty if we leave with no deal. We have already heard that is not no deal—it is a managed no deal. We have a huge trade deficit with the European Union—£67 billion. We can offer it GATT 24, with tariff-free and quota-free trade the moment we leave, which it would be advised to accept, given that it trades with us so much.
The European Union is on the verge of a recession. Germany has no growth and has only stopped quantitative easing for three months, since November, and it has slipped into recession. The European Union has started printing money again to support the euro. Now is the time, when we still have economic growth—it needs our markets—to push for more concessions. It is not the time to take no deal off the table; it is the time to keep it there as a threat to bring the European Union to heel. When we get to the compression point, it cannot be this Parliament or this country that blinks first. I urge all colleagues to keep no deal on the table. It is our only insurance for getting out of the European Union.
I know whom I would rather listen to—the Business Secretary, not the hon. Member for North West Leicestershire, who has probably not even seen those impact assessments. Even if he has, and has read them—perhaps even understood them—he would reject them as some remain conspiracy, because they do not fit his perfect ideology. I gently say to him that the day may yet dawn when the good people of North West Leicestershire face the reality of Brexit—God help us if they ever face the reality of a hard Brexit—and lose their jobs and see the future of their children and grandchildren reduced because of his words and his actions. I hope that they will seek to put the blame where it absolutely lies—with him and all those who have led this country to make the biggest mistake we have ever made in our history, by voting to leave the European Union. I will not be part of that.
The hon. Member for Birmingham, Yardley (Jess Phillips)—unfortunately, she is no longer in the Chamber—spoke wisely. I do not fear my electorate. Good Lord, I was elected with a majority of 389, so I can look fear in the face—I understand these things. I also know that people respect you if you are honest with them, if you fight for them, and if you tell it to them as it is. They do not thank you for spin, and they do not thank you for false promises that you cannot deliver.
Mr Speaker, in case you do not know what is going on, it is fascinating. The right hon. and learned Member for Beaconsfield (Mr Grieve) identified the fact that the motion is flawed. It does not do what the Government promised, and does not enable us to vote to take no deal off the table—that awful irresponsibility. The right hon. Member for Meriden (Dame Caroline Spelman) tabled an amendment, very wisely, that does the job and gives the House that opportunity. The Prime Minister stood at the Dispatch Box and promised a free vote. That is not occurring. There will be no free vote, and now the right hon. Member for Meriden has been persuaded not to press her amendment. I hope it will be pushed and I hope people will show the courage that so many right hon. and hon. Members have done—Members such as the hon. Member for East Surrey (Mr Gyimah), who had the courage to resign on a point of principle in order to do the right thing by his constituents and by his country. There is, however, a free vote on another Mickey Mouse amendment which undermines everything the Government stand for.
We all know the facts. No deal could tip us back into recession, and will cost the north-west jobs and cripple our exports. It would undermine the difficult decisions this Government have had to make to strengthen the economy over the past decade. It is time for this House to state clearly that no deal is not in the interest of our country or our constituents, and that we will not countenance it. The negotiation is over. The deal is over. No deal is no longer just a threat to drive a hard bargain; it is a threat to our economy, and a sign to any future trade partners of how unwilling we are to compromise.
“Taking back control is a careful change, not a sudden stop—we will negotiate the terms of a new deal before we start any legal process”.
Well, we know how far that has got. No deal is the most sudden stop anyone can envisage. However, it is not just the letter of the promises that will be broken, but the spirit of them, too. For months, you could not watch TV or listen to the radio without hearing the refrain “Vote Leave, Take Back Control”. Let us look at how no deal would take back control. It would mean our farmers would be reliant on the EU to list UK products of animal origin as meeting its import requirements for its countries. It would mean our pleading with the EU to issue an adequacy decision regarding our data protection rules. It would mean years and years of negotiations and trade-offs in order to rebuild a trading relationship that would be a mere shadow of what the Prime Minister’s deal offered. And all because a few of my colleagues failed to realise that simply walking away does not cause the EU to cease to exist, nor does it mean that its influence will cease. None of this is the control that was promised.
No deal cuts off the control we had within the EU, where we had a say in the making of laws. It cuts off the control the deal gave us by destroying any good will and willingness to negotiate that the EU had left in its negotiations with us. No deal condemns us to economic turmoil and, what is more, it does so by betraying the promise of the leave campaign. I have often been told to “respect the referendum result”. I did that: I voted for that deal twice. Today, I lay that same challenge at the feet of those on my side of the House who think no deal is worth it. It is not what you promised, it is not what 17.4 million people voted for and it is not what is best for the country.
It is unusual for the Confederation of British Industry and the Trades Union Congress to speak with one voice, but they are both against a no-deal Brexit. This time it is far worse than 2008, because the Government would be consciously and deliberately inflicting the outcome on the UK economy and, by extension, on our communities. It is truly shocking that the Chancellor claimed merely a few hours ago that the Government’s approach to Brexit was pro-business. So many of their statements appear to be the opposite.
My right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) has detailed the devastating impact that a no-deal scenario would have across sectors, from transport to medicines to public finances. My hon. Friend the Member for Birmingham, Erdington (Jack Dromey) and the right hon. Member for Meriden (Dame Caroline Spelman) made clear the impact that no deal would have on the manufacturing sector in both the excellent meetings they held in the House.
I wish briefly to mention small businesses, because they are affected too. A woman in my constituency runs a fashion business. Let us not forget that fashion accounts for £35 billion, while fishing accounts for £1.8 billion—just a small comparison. She wrote to me:
“Dear Catherine…I thought I would share with you another email that I received…from a client in Denmark – who no longer wishes to trade with us... it’s self explanatory.”
The email she shared reads:
“Dear Sandra
Thanks for your email.
With England leaving eu we have decided to focus on distributors from eu to avoid issues at the border.”
It was from Martin in Denmark. Up and down the country, small businesses are coping with this, day in, day out.
We have seen companies, trade unions, charities, the NHS and watchdogs all coalesce around the view that a no-deal Brexit will inflict chronic economic hardship on us all. Not only that, but it will fray even further the delicate fabric that holds us all together. The tone of the national debate has plummeted since Brexit became the national conversation around dinner tables. That is why I am proud to have co-signed amendment (a), and I am still keen to move it unless others can persuade me otherwise. I recognise that many Members on the Government Benches are not actively advocating a no-deal outcome, but with days to go before we crash out, we must all recognise that declining to vote for amendment (a), or at least to take it seriously, will make us complicit should such an outcome occur.
We have 373 hours left until the UK leaves the EU. I hope all Members will reflect on the specific ways in which a no-deal scenario will impact on households, businesses, schools and workplaces, and recognise that damage. I hope that with that knowledge they will vote to avert this chaos.
Some people have talked about leaving with no deal as if it would be some kind of inconvenience—as if there would be a little bit of disruption like when your BT internet goes down for a few hours. Others have gone to the other extreme and said that it would not be unlike Dunkirk. Well, nobody said during the referendum campaign, “Vote leave and you’ll have to invoke the spirit of Dunkirk.” That is an incredibly low bar to set for the success of this project.
There are those who say that leaving means that we do not need any deals. That is not true at all. What happens is that on day one after we leave, we will not have a deal but we will rapidly have to negotiate a whole set of deals. We will have to rely on the kindness of strangers in order to be able to do so.
Should we have no deal on the table just for negotiating purposes? The EU knows that for a country that has been able to sign on to the PM’s deal where we leave our voice, our vote and our veto in return for best endeavours, we are not serious about no deal. It is not a credible negotiating position.
When we say that the WTO is better for us, we also then say that we want to negotiate other trade deals. Why leave the preferential position to go out and try to negotiate something better in terms of no deal? It just does not make sense, and it is not credible either. This idea keeps rearing its head in different ways—a managed no deal or a WTO Brexit. These are all rebrands of the same idea, and they mean that we are leaving without any arrangements—we are setting sail without knowing where we are going. I am willing to entertain the prospect that it could work—perhaps 20, 30 or 50 years down the line, as my hon. Friend the Member for North East Somerset (Mr Rees-Mogg) has suggested. In the meantime, what would we have done to people’s lives in this country? What about manufacturing, or the farmers in my constituency who came to me and said, “If no deal goes ahead, we are completely wiped out”?
So much of this is about trade, about tariffs and about borders, but it is easy to forget about the people we are here to represent. If we leave on 29 March without a deal, we will be on a war footing when there is no external threat. We will have a massive civil contingency. The Prime Minister will stand in front of Downing Street on Independence Day having to say to the country, “Do not worry, we will manage all the traffic jams. Do not worry, we will make sure you get your medicine. I have now sent the Trade Minister to go and negotiate all those many deals. Do not worry, everything will be alright.” She will have to do that because, of all the negotiable options available, the Government have chosen the one that causes the most disruption to people’s lives. In what sense and in what world will that be a victory for this country? In what sense and in what world can we say to those who voted leave, “This is the vision that was given to you during the referendum campaign”? There is no way in the world that that is right.
In the 10 years since I have been an MP, we have lived through some extraordinary political moments—things that have seemed entirely impossible have come to pass. But even in this surreal age, it does seem to me that today’s debate, low key though it has been in many measures, is a particularly extraordinary surreal moment. We are debating here in the British Parliament the prospect of voting, or not voting, for a policy that the British Government have declared will cut 10% out of our GDP—out of our economy—over the next 15 years. It will reduce the size of our economy by £200 billion over the next 15 years. It is utterly inconceivable that, in this era or in any other era, anybody sensible could possibly vote for a policy that will cut more than twice what we spend on the NHS each year out of our economy.
In an era where we have schools closing on Friday afternoons because they cannot afford to stay open, where it feels like teenagers are being stabbed almost weekly on our streets because of a dearth of police officers, and where the head of the NHS is telling the Government they need to de-privatise the NHS and invest in it, it is entirely inconceivable that this Parliament or any Parliament could vote to do such damage to our public services and our people. I do not think there is any prospect of this House, save for a few on the Government Benches, voting for that outcome. I do not think there was ever any prospect of no deal really being pursued by the Government. It has been a blackmail negotiating tactic by Government Front Benchers to hold all our feet to the flames to try to ram through a Brexit deal.
We all know that any version of Brexit will diminish our economy. Any version of Brexit is a jobs-eating Brexit. Even the version advocated by the Government Front Benchers will by their own admission cut not £200 billion, but between £40 billion and £60 billion from our GDP. That is why we must obviously vote against no deal tonight and obviously vote in favour of an extension to article 50 tomorrow, but we must be honest with the people of this country. I say this to those on my Front Bench as much I do to those on the Government Front Bench: we must be honest that Brexit in any regard will damage the livelihoods and opportunities of our constituents. We in the Labour party should be opposing it for that reason, if for no other.
My hon. Friend the Member for Birmingham, Yardley (Jess Phillips) spoke courageously and eloquently this evening. She is absolutely right: we should not be frightened of speaking truth not only to power, but to our constituents. If that means my party wishes to deselect me or my constituents wish not to vote for me in the next election, then so be it, but I will know that my conscience is clear—I did not vote for triggering article 50, I will not vote for a Tory Brexit and I will not vote for a Labour jobs-first Brexit. I will vote tonight to do the country a service and stop a no-deal Brexit at all costs.
Very briefly, I encourage a note of moderation when talking about no deal. Many of us, if not all of us, prefer a good deal to no deal—that is one of the key logics of leaving the European Union—but I suggest that WTO rules are not the so-called disaster that everyone is suggesting. We have to look at economic reality. We trade profitably with the rest of the world outside the EU on largely WTO, no-deal terms. What people can forget is that investment is about comparative advantage and the extent that a country’s corporation tax rates are lower and its labour markets are flexible, how good its top universities are and its financial expertise. In aggregate, those things are more important than WTO tariffs. If proof were needed, we have only to look at how well the country is doing economically in the face of so-called concern that we could be leaving the EU on no-deal terms. Investment decisions over recent years have been made in the full knowledge that we could be leaving on no-deal terms.
People need to remember that there were many predictions of economic woe and gloom should we vote to leave the EU in 2016. They came from the Bank of England, the IMF, businesses, and the various sector organisations and public organisations. Some of the predictions suggested 500,000 or 700,000 extra unemployed by December 2016. What happened? Actually, we created jobs, and economic growth did well. We now, today, have a record low unemployment rate that is half the EU average, record manufacturing output, and record inward investment. So we need to be careful of predictions, as Mark Carney, the Governor of the Bank of England, recognised. The Bank of England had to apologise publicly for getting it so wrong, as did so many others.
We have been told by our own Government that the preparations for no deal are in full swing. On 12 February, I asked the Prime Minister whether the Government are ready, saying:
“can she reassure the House that should we leave on 29 March on no-deal WTO terms, we are sufficiently prepared?”—[Official Report, 12 February 2019; Vol. 654, c. 752.]
Her response was just three words: “We are indeed.” So the preparations have been made, and I think we should take some comfort from that.
Ruling out no deal makes a bad deal more likely. There needs to be an element of moderation across the House when describing no deal. The economic reality is at variance with the various doomster forecasts that were proved so wrong back in 2016, and we should take note of that fact.
What I have taken from today’s debate is that exiting the EU without an agreement is not simply one among several equivalent Brexit options—it is in a category of its own. Everyone will have their own views on the balance of strengths and weaknesses of other options, whether it be a Canadian-style free trade agreement or a Norway-style arrangement, and the appropriateness of the trade-offs and compromises involved in each. But those options can at least be contemplated rationally on the basis of their likely consequences for our economy and our security, their implications for the Irish border, and their chances of successfully emerging from the detailed negotiations on the future relationship.
In contrast, it is hard to overstate how damaging a no-deal exit from the EU in just over a fortnight would be, and speech after speech today has brought that home. A no-deal Brexit is simply not a viable option. Indeed, an exit from the EU on 29 March, or indeed any date thereafter, without agreement would be nothing short of a national disaster—a point that Labour Members have endlessly repeated over the past two years. A no-deal Brexit would affect every facet of our national life, and every region and nation of the UK. It would bring to an end, at a stroke, the whole body of legal arrangements that exist between the UK and the EU, plunging us into a legal and regulatory vacuum.
The focus of much of today’s debate has rightly been on the impact of a no-deal Brexit on the economy—and for good reason, given the implications for businesses and individuals across the UK. The implications of crashing out without a deal on 29 March would be significant both in terms of lost growth over the long term and the grievous dislocation that we face in the short term. The proposals for tariffs under a no-deal exit that the Government published this morning, without any consultation with business, merely serve to underline what a disastrous outcome a no-deal exit would be.
However, the impact of a no-deal departure is about much more than just tariffs. It would mean a sudden and drastic change in the entire body of rules that currently govern how we trade in a range of crucial areas. It would threaten the complex law enforcement and judicial co-operation arrangements that keep Britain safe. It would almost inevitably result in infrastructure being placed on the Irish border, place untold strain on the Good Friday agreement and Anglo-Irish relations more generally, and exacerbate the current political instability in Northern Ireland, raising the spectre, as the Secretary of State for the Environment said at the outset, of direct rule from Westminster.
In short, such an exit is the hardest and most chaotic of departures. It provides no certainty, and no one can say with any real certainty just how extensive the damage would be. Of course we would survive, but why would any Government force the British people to cope with an entirely avoidable act of self-harm that opinion polling suggests only a minority of the public support? No responsible Government in their right mind should countenance a no-deal exit from the EU, especially when, as the hon. Member for East Surrey brought home in his contribution, the other side knows full well that it has always been a hollow threat.
The tragedy is that instead of simply announcing that under no circumstances will the UK leave the EU without a deal, this Government adopted such an outcome as their official plan B, endlessly repeating over months the nonsensical mantra that “no deal is better than a bad deal”, in a way that has de-sensitised many people in our country to the risks involved. As the hon. Member for North East Fife (Stephen Gethins) said, the Government have spent a significant sum of public money trying to ensure that they are prepared for no deal—and trying is the operative word, because we know from the Government’s own impact assessment summary that the UK is simply not prepared to leave the EU on 29 March.
If we leave aside the legislative burden that still needs to be faced, the impact assessment makes clear that Departments are on track for just over two thirds of the most critical projects. It is honest about the fact that, in the event of a no-deal exit, the UK would be at the mercy of the actions of the European Commission, EU member states and EU businesses. That brings me to my next point, which is that there is no such thing as a managed no deal—[Interruption.]
There is no such thing as a managed no deal, despite the protestations of the more cavalier Members on the Government Benches. It is a myth, and that is why the idea of no deal as an act of national liberation is so misleading. Not only would the Government in all likelihood lose control of events in a no-deal scenario, but they would inevitably end up supplicating before the EU. The Government’s own technical notices make clear that in a no-deal scenario, agreement is required from Brussels in a swathe of areas.
If anyone thinks that, amid the acrimony that would exist following a no-deal exit, the EU would ride to the rescue and agree to a raft of reciprocal mini-deals in all the essential areas required, a waiver of the Union’s rules or a standstill transition period without a withdrawal agreement, as amendment (f) suggests, they should remind themselves of the Commission’s plans for a no-deal exit. Those plans make it absolutely clear that the EU will agree to co-operative measures only where strictly necessary and where it is in their own interests. The plans make clear that those measures could not replicate the benefits of membership of the Union and state plainly that they could be revoked at any time.
It is yet another example of the misplaced confidence that has defined the approach of hard-liners on the Government Benches. Just like the notion of a cost-free, no-deal exit, it is a fantasy. That is why so many Government Members, including many members of the Cabinet, whether they said so publicly or not, know that a no-deal exit is not a viable option and that it must be ruled out.
This House has already made its intentions clear in relation to a no-deal exit on two separate occasions. I agree with the comments made in all quarters today that the way the Government have framed their motion is disappointing. At worst, it is contradictory. At best, it is ambiguous, and as the right hon. and learned Member for Beaconsfield said, it certainly raises suspicions.
It is of course a statement of fact that the current legal default remains that the UK leaves the EU on 29 March, and if we rule out a no-deal exit tonight, we will of course have to amend the European Union (Withdrawal) Act accordingly, just as we would have had to amend it if the Government’s deal had passed yesterday. We will have to agree to an extension of the article 50 process so that an alternative way forward can be found. Both are a given.
However, the only question before us this evening is: does this House, in principle, definitively rule out a no-deal exit under any circumstances? No other question needs to be determined today, and that is why our preference is to support amendment (a).
There are only 16 days left now until 29 March. The possibility of a no-deal exit, whether by accident or design, is still very real, as the Father of the House made clear in his contribution. It is time we made a no-deal Brexit an impossibility, and this could be our last chance to do so. That is why I urge right hon. and hon. Members from across the House to decisively rule out a no-deal Brexit this evening, so that tomorrow we can turn our attention as a House to shaping what happens next.
I accept that many of those who seek a delay to Brexit have a range of motives, and I think an ounce of civility would sometimes do well in some of our proceedings. I accept that some seek a delay out of a genuine fear of what no deal might produce and want more preparations to be undertaken. However, there are also some in this House—we know it to be true—who seek to defy and reverse the result of the referendum itself. We in this House need to understand the democratic disaster that would await us if we took that course.
Many of us have made a number of compromises to be able to support the Prime Minister’s agreement—I pay tribute to the Prime Minister for her tenacity and simple good manners in the way in which she has dealt with the House—but if we are to leave the European Union in line with the instruction, it is a menu with limited options. We either leave with a deal, and the only deal available is the Prime Minister’s deal at the present time, or we leave with no deal, with unavoidable consequences.
The alternative is to revoke article 50 and have no Brexit at all, with unavoidable and unforeseeable consequences.
This motion focuses on the date of 29 March. At that point, we either have to leave with a deal, in line with article 50, or leave with no deal, for which the risks have been set out. If we choose neither of these, then we have to have an extension of article 50 either to make administrative changes for a deal that may already have been negotiated, or simply to have an extension when we do not know what the point of it will necessarily be. Let me say, on this extension, first, it is not in our gift unilaterally to grant such an extension; secondly, it requires unanimity among all 27 other European countries; and, thirdly, we cannot know what price might be extracted from the United Kingdom for that extension. It is not an easy option for the House or the country to take.
What are the alternatives to the Government’s policy? We were told at the outset of the debate by the shadow Brexit Secretary, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), that Labour had repeatedly warned us about x, y and z. Nothing could be further from the truth. We have had nothing but inconsistency from the Labour Front Bench. The Labour leader did not want another referendum; now he does want another referendum, despite the fact that the shadow Foreign Secretary, the right hon. Member for Islington South and Finsbury (Emily Thornberry), says it is telling Labour voters they are stupid. The shadow Brexit Secretary wants a referendum, but will not put down an amendment to say that it can happen. Labour said that it wanted to end free movement of people; now it wants to be part of the single market all over again. It said it wanted an independent trade policy, but what it has is simply legally impossible, because the European Union rules do not allow a third country to have an influence on EU trade policy. [Interruption.]
For much of this debate I did not recognise the country being described as the country I live in—a country that many seem to be describing as isolated, inept and intimidated by its own future. I believe in the future of this country. We are not passengers in our own destiny; we are able to control our own future. This is a country with exports at record levels; a country where last year, when global foreign direct investment fell by 40%, foreign direct investment went up by 20%; a country with employment at an all-time high; a country that has had more consecutive quarters of growth than any other G7 country; and a country that is producing these results under good Conservative management.
Neither did I understand the picture painted of the preparations already made for no deal, because we and the civil service have spent a great deal of time on the mitigations.
I want to answer the very direct question I was asked by the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper): is the result of this vote that the default position is that we will not leave the EU on 29 March without a withdrawal agreement? That is the result of the motion we are debating tonight. But I have to say to the right hon. Lady that the only way to take no deal off the table in the longer term is to have a negotiated deal, unless we were to revoke article 50 and have no Brexit. There would be no worse outcome for this House, for this country and for our democracy than to have no Brexit. We have been given a clear instruction by the people of Britain. In the days ahead, we in this House must decide who in our democracy are the masters and who are the servants.
We heard from the hon. Member for Bath (Wera Hobhouse) what can only be described as a diatribe about the will of the people, which she derided. I happen to believe that when this House contracts out its sovereignty on an issue, which we did on the European Union, and we tell the people of Britain that we will accept what decision they take, we are honour-bound and duty-bound to take that decision. When she says that the will of the people does not matter, it might not matter to the Liberal Democrats, but it matters to the Conservative party. For me, this is ultimately a decision about our democratic values.
Amendment proposed: (a) Line 1, leave out from “House” to end and add
Amendment proposed: (f), at end, add:
Main Question, as amended, put.
Resolved,
Let me be clear: such a short technical extension is likely to be on offer only if we have a deal in place. Therefore, the House must understand and accept that if it is not willing to support a deal in the coming days and as it is not willing to support leaving without a deal on 29 March, it is suggesting that there will need to be a much longer extension to article 50. Such an extension would undoubtedly require the United Kingdom to hold European Parliament elections in May 2019. I do not think that that would be the right outcome, but the House needs to face up to the consequences of the decisions that it has taken.
In the days that follow, myself, the shadow Brexit Secretary and others will have meetings with Members across the House to find a compromise solution that can command support in the House. That means doing what the Prime Minister failed to do two years ago: searching for a consensus on the way forward. Labour has set out a credible alternative plan. Members across the House are coming forward with proposals. Whether that is a permanent customs union, a public vote, Norway-plus or other ideas, let us as a House of Commons work to find a solution to deal with the crisis facing this country and the deep concerns that many people have for their livelihoods, their lives, their future, their jobs, their communities and their factories. It is up to us as the House of Commons to look for and find a solution to their concerns. That is what we were elected to do.
The Prime Minister should have come to the Dispatch Box this evening with a degree of humility, accepting that she has failed and immediately putting in place the legislation to withdraw from legislation the threat of us leaving the European Union on 29 March. Why has she not done that? What this House needs to do tomorrow is take control of the process. We do not need a time-limited extension to article 50; it must be open-ended. I for one welcome elections to the European Parliament, if they are to take place.
We now must move on and have a meaningful debate about a people’s vote. If necessary, we have to look at the revocation of article 50. I say once again to the Prime Minister that Scotland will not be dragged out of the European Union against its will. Everything that has gone on in this House is a determination that the best interests of the people of Scotland will be met as an independent European nation.
Ultimately, the House can debate what the House wants to debate. We will see what it wants to debate and what shape events take in the days to come. I do not want to express myself more forcefully than that—I do not think that would be right—but the right hon. Gentleman need be in no doubt that the matters will be fully debated. Members will have the opportunity to put their point of view. In all likelihood, many propositions will come to be tested.
As soon as the House expressed its opinion on no deal, the Government attempted to quash it and voted against it, putting a three-line Whip on the people they had previously given a free vote to, with a complete lack of success—the majority soared. If this evening the Prime Minister or another Minister will not accept that this is not just another motion, as if it was a women’s institute debate that expressed an opinion—[Interruption.] I have higher regard for women’s institutes’ opinions than the Government have for the opinions of this House.
Can we have an assurance from somebody that tomorrow’s debate is actually intended to set policy and is not a mere expression of opinion? That is my serious point, but no doubt I will be deluged with protests from women’s institutes around the country about the unfortunate example I chose. I repeat my complete respect for the opinion of all women’s institutes.
“That this House:
1. notes the resolutions of the House of 12 and 13 March, and accordingly agrees the Government will seek to agree with the European Union an extension of the period specified in Article 50(3);
2. agrees that if the House has passed a resolution approving the negotiated withdrawal agreement and the framework for the future relationship for the purposes of section 13(1)(b) of the European Union (Withdrawal) Act 2018 by 20 March 2019 then the Government will seek to agree with the European Union a one-off extension of the period specified in Article 50(3) for a period ending on 30 June 2019 for the purpose of passing the necessary EU exit legislation; and
3. notes that if the House has not passed a resolution approving the negotiated withdrawal agreement and the framework for the future relationship for the purposes of section 13(1)(b) of the European Union (Withdrawal) Act 2018 by 20 March 2019 then it is highly likely that the European Council at its meeting the following day would require a clear purpose for any extension, not least to determine its length, and any extension beyond 30 June 2019 would require the United Kingdom to hold European Parliament elections in May 2019.”
That is the Government’s motion for tomorrow. That motion, of course, is amendable. If colleagues on either side of the House wish to submit amendments to that motion, they will have an opportunity to do so. I am speaking off the top of my head, but the same logic will apply in respect of that motion as has applied over the previous two days—namely, that any amendments to it tabled before the rise of the House tonight will appear on the Order Paper tomorrow. However, if manuscript amendments are tabled after the rise of the House, but before 10.30 am tomorrow, they will be accepted for consideration by the Chair—by me.
I would very politely suggest to the hon. Member for Wakefield (Mary Creagh) that, although I will take one further point of order, if necessary—[Interruption.] Well, I would very politely suggest that, very soon, we ought at least to hear the business statement by the Leader of the House. I will take one or two very brief—
I would say to the right hon. Member for Broxtowe (Anna Soubry) that, as I think she is well aware, a number of Members across the House in recent weeks have had a concern about this particular policy issue. If significant numbers of Members across the House have a concern and a desire to act in common on this matter, it is open to them to explore the potential for doing so. They will find that they get professional advice on that matter, as any Member of the House is entitled to seek and obtain professional advice. It is not for me, here and now, to say exactly what should happen, but what I will say is that Members can work together and be heard.
If there are no further points of order, we come to the emergency business statement by the Leader of the House.
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