PARLIAMENTARY DEBATE
Exiting the European Union - 5 September 2016 (Commons/Commons Chamber)
Debate Detail
The Prime Minister has made it clear that there will be no attempt to stay in the EU by the back door; no attempt to delay, frustrate or thwart the will of the British people; and no attempt to engineer a second referendum because some people did not like the first answer. The people have spoken in a referendum offered to them by this Government and confirmed by Parliament —by all of us, on both sides of the argument—and we must all respect it. That is a simple matter of democratic politics.
Naturally, people want to know what Brexit will mean. Simply, it means leaving the European Union, so we will decide on our borders, our laws and the taxpayer’s money. It means getting the best deal for Britain: one that is unique to Britain and not an off-the-shelf solution. This must mean controls on the numbers of people who come to Britain from Europe, but also a positive outcome for those who wish to trade in goods and services. This is an historic and positive moment for our nation. Brexit is not about making the best of a bad job; it is about seizing a huge and exciting opportunity that will flow from a new place for Britain in the world. There will be new freedoms, new opportunities and new horizons for our country. We can get the right trade policy for the UK. We can create a more dynamic economy, a beacon for free trade across the world. We want to make sure our regulatory environment helps, rather than hinders, businesses and workers. We can create an immigration system that allows us to control numbers and encourage the brightest and best to come to this country.
I want to be clear to our European friends and allies that we do not see Brexit as ending our relationship with Europe; it is about starting a new one. We want to maintain or even strengthen our co-operation on security and defence. It is in the interests of both the UK and the European Union that we have the freest possible trading relationship. We want a strong European Union, succeeding economically and politically, working with Britain in many areas of common interest, so we should all approach the negotiations to come about our exit with a sense of mutual respect and co-operation.
I know the House will want to be updated about the work of the Department. It is a privilege to have been asked to lead it by the Prime Minister. The challenge we face is exciting and considerable. It will require significant expertise and a consistent approach. Negotiating with the EU has to be got right, and we are going to take the time to get it right. We will strive to build national consensus around our approach.
We start from a position of economic strength. As the Prime Minister said yesterday, there will be challenges ahead, but our economy is robust, thanks in no small part to the work of my right hon. Friend the Member for Tatton (Mr Osborne). The latest data suggest our manufacturing and service industries and consumer confidence are all strong, contrary to some of the earlier predictions. Businesses are putting their faith and their money into this country. Over the summer, SoftBank, GlaxoSmithKline and Siemens all confirmed that they will make major investments in the UK. Countries, including Australia, have already made clear their desire to proceed quickly with a new trade deal for the UK. As other nations see advantages to them, I am confident that they will want to prioritise deals with the UK, too. But we are not complacent. Our task is to build on this success and strength and to negotiate a deal for exiting the European Union that is in the interests of the entire nation.
As I have already indicated, securing a deal that is in our national interest does not and must not mean turning our back on Europe. To do so would not be in our interests, nor Europe’s, so we will work hard to help to establish a future relationship between the EU and the UK that is dynamic, constructive and healthy. We want a steadfast and successful European Union after we depart.
As we proceed, we will be guided by some clear principles. First, as I have said, we wish to build national consensus around our position. Secondly, we will always put the national interest first. We will always act in good faith towards our European partners. Thirdly, wherever possible, we will try to minimise any uncertainty that change will inevitably bring. Fourthly, and crucially, by the end of this process we will have left the European Union and put the sovereignty and supremacy of this Parliament beyond doubt.
The first formal step in the process of leaving the European Union is to invoke article 50, which will start two years of negotiations. Let me briefly update the House on how the machinery of government will support our efforts and on the next steps we will take. First, on responsibilities, the Prime Minister will lead the UK’s exit negotiations and be supported on a day-to-day basis by my Department. We will work closely with all Government Departments to develop our objectives and to negotiate new relationships with the EU and the rest of the world. Supporting me is a first-class ministerial team and some of the brightest and best in Whitehall, who want to engage in this national endeavour. The Department now has over 180 staff in London, plus the expertise of over 120 officials in Brussels. We are still growing rapidly, with first-class support from other Departments.
As to the next steps, the Department’s task is clear. We are undertaking two broad areas of work. First, given that we are determined to build national consensus, we will listen and talk to as many organisations, companies and institutions as possible—from large plcs to small businesses, and from the devolved Administrations to councils, local government associations and major metropolitan bodies.
We are already fully engaged with the Governments of Scotland, Wales and Northern Ireland to ensure a UK-wide approach to our negotiations. The Prime Minister met the First Ministers of Scotland and Wales and the First Minister and Deputy First Minister of Northern Ireland in July. Last week, I visited Northern Ireland for meetings with its political leaders, where I reiterated our determination that there will be no return to the hard borders of the past. I will visit Scotland and Wales soon.
My ministerial colleagues and I have also discussed the next steps with a range of organisations. My first meeting was with the general secretary of the Trades Union Congress, followed by key business groups, representatives of the universities and the charitable sector, and farming and fisheries organisations. But that is just the start. In the weeks ahead, we will speak to as many other firms, organisations and bodies as possible—research institutes, regional and national groups, and businesses up and down the country—to establish their priorities and the opportunities for the whole of the UK. As part of that exercise I can announce that we will be holding roundtables with stakeholders in a series of sectors, to ensure that all views are reflected in our analysis of the options for the UK. [Interruption.]
I will also engage with EU member states. I am beginning with a visit to Dublin this week. I am working particularly closely with the Foreign Secretary and the Secretary of State for International Trade, who have been meeting counterparts in Washington, Brussels and Delhi, and in the capitals of other EU states. While we do that, my officials, supported by officials across Government, are carrying out programme of sectoral analysis and regulatory analysis, which will identify the key factors for some 50 sectors of British business. It is extremely important that the House understands that. We are building a detailed understanding of how the withdrawal from the EU will affect domestic policies, to seize opportunities and ensure a smooth process of exit.
The referendum result was a clear sign that the majority of the British people want to see Parliament’s sovereignty strengthened, and so throughout the process Parliament will be regularly informed, updated and engaged.
Finally, we are determined to ensure that people have as much stability and certainty as possible in the period leading up to our departure from the EU. Until we leave the European Union, we must respect the laws and the obligations that membership requires of us. We also want to ensure certainty when it comes to public funding. The Chancellor has confirmed that structural and investment fund projects signed before the autumn statement and research and innovation projects financed by the European Commission by money granted before we leave the EU will be underwritten by the Treasury after we leave. Agriculture is a vital part of the economy and the Government will match the current level of annual payments that the sector receives through the direct payments scheme until 2020, again providing certainty.
The Prime Minister has been clear that she is determined to protect the status of EU nationals already living in the UK. The only circumstances in which that would not be possible would be if the rights of British citizens in EU member states were not protected in return, something that I frankly find very hard to imagine.
I am confident that together we will be able to deliver on what the country asked us to do through the referendum. I am greatly encouraged by the national mood. Most of those I have met who wanted to remain have accepted the result and now want to make a success of the course Britain has chosen. Indeed, organisations and individuals I have met already who had backed the remain campaign now want to be engaged in the process of exit and in identifying the positive changes that will flow from it as well as the challenges. I want us all to come together as one nation to get the best deal for Britain.
In conclusion, we are confident of negotiating a new position that will mean this country flourishing outside the European Union while keeping EU members as friends, allies and trading partners. We leave the European Union but we will not—[Interruption.]
In conclusion, we are confident of negotiating a position that will mean this country flourishing outside the EU, keeping its members as our friends, our allies and our trading partners. We will leave the European Union but will not turn our back on Europe. We will embrace the opportunities and freedoms that will open up for Britain. We will deliver on the national mandate for Brexit, and we will deliver it in the national interest.
I welcome the attitude he has expressed today that he will be talking and listening to everyone. May I give him some advice? Perhaps he should start by putting a telephone number on his website. It has been a little difficult tracking his Department down, so it would be nice if he could begin by giving that out later, along with some of the answers that we would expect. The spin before today’s statement was so much promise. We heard that we would hear what the Government’s strategy for Brexit is, but instead we have not heard a strategy or a thought-out plan. It has been more empty platitudes from a Government who continue to make it up as they go along.
Last night, the Prime Minister, who was on a plane, seemingly told us what she was not going to do—it seems that we will not have a points-based immigration system, any extra money for the NHS or a reduction in VAT on fuel—but we have not been told what the Government will do. When will they tell us how they will deliver, for example, free trade for British businesses while imposing immigration controls, let alone how they will address the red lines that Labour has demanded on the protection of workers’ rights and guarantees for EU citizens?
The Secretary of State says that he wants to present a positive vision of Britain post-Brexit, but unless he can tell us what deal the Government are working towards, how they plan to achieve it and whether other member states will accept it, his positive vision is just a pipe dream. It is just rhetoric.
May I remind the Secretary of State of what he said two months ago? He said:
“The negotiating strategy has to be properly designed, and there is some serious consultation to be done first…This is one of the reasons for taking a little time before triggering Article 50.”
We absolutely should take a little time before triggering article 50, but where is the negotiating strategy and what serious consultation has taken place with other member states? In the absence of either, why are the Government pushing ahead with article 50? What has happened since July? What is the plan?
May I remind the House what the Foreign Affairs Committee said in July about the previous Government? It said:
“The previous Government’s considered view not to instruct key Departments…to plan for the possibility”
of a leave vote “amounted to gross negligence.” What do we say about the current Government when, two months later, we are no further forward? Surely all we can say is this: when it comes to planning for Brexit, they have gone from gross negligence to rank incompetence. We see the warnings to Britain from Japan and others at the G20, and we see investment from companies like Nissan put under threat. It is British workers who will pay the price for the Government’s incompetence.
This morning, the Japanese ambassador, speaking on the “Today” programme, said something that was as honest as it was deadly. He said: “The problem that we see is not to have a very well thought through consideration before you start negotiation.” He is absolutely right. Are the Government rushing to start negotiation? Yes. Do they have a well thought-out plan for that negotiation? No.
The Secretary of State has won plaudits in the past for his principled stand on issues such as parliamentary sovereignty—indeed, he talked about the importance of parliamentary sovereignty today—democratic rights and the rule of law, so surely he cannot think it right that article 50 should be triggered by royal prerogative. As his friend and mine, the former Attorney General the right hon. and learned Member for Beaconsfield (Mr Grieve), said:
“The idea that a government could take a decision of such massive importance…without parliamentary approval seems to me to be extremely far-fetched.”
Well, I do not think it is far-fetched; I think it is just plain wrong. And I think that if the Secretary of State was still on the Back Benches, he would agree with me.
When there is no evidence of sound planning by the Government, no detail on the deal they want to strike, no strategy for achieving that deal or the reasons for pushing it through, Parliament must have more of a say. We must have more than simply a say: we must have a vote.
The hon. Lady and the Labour party accuse us of rank incompetence—the Labour party! The Prime Minister, on her trip to China, described her approach to complex problems—this is certainly a complex problem. Her approach is to collect the data, analyse it, make a judgment, make a decision and implement it. The Labour party clearly does it the other way around. The Americans have a phrase for the way the Labour party approaches these things—not looking at the problem, not looking at the issue, not looking at the data. They call it “load, fire, aim”. That may be very appropriate for the circular firing squad that is the Labour party, but it is not appropriate to running things in the national interest.
The hon. Lady mentioned the points-based immigration system. What the Prime Minister said in China was very clear. She wants a results-based immigration system that delivers an outcome the British people voted for. That is what she will be delivering at the end of this.
The hon. Lady mentioned the Japanese ambassador. From memory, the Japanese ambassador this morning said something to the effect that he had not met a company that did not think Britain was the best place in Europe to have its business—not one. He also said that he admired the Prime Minister’s approach to the negotiation. The hon. Lady should pick her quotes a little more carefully.
Let me come to the hon. Lady’s central point, if there was a point in what she had to say. She talked about article 50. Before we entered on to this course, the referendum Bill went through this House. It was voted for 6:1 in this House, and she voted for it. What did the Bill say? It was presented by the then Foreign Secretary, who said that we were giving the British people the right to make the decision—it was not advice or consultation. What she is trying to wrap up in a pseudo-democratic masquerade is the most anti-democratic proposal I have heard for some time. She wants to deny the will of the British people and up with that we will not put.
On the specifics of the statement—[Interruption.] The one specific is that we are leaving the European Union. On that specific, I wonder if I might press my right hon. Friend. In the media today, we have had a certain amount of speculation on the detail in terms of controlling our borders. Will he confirm that, in leaving the European Union, the No. 1 thing that is absolutely not negotiable is that the United Kingdom will take control of its borders and the laws relevant to that and that that is not negotiable in any other deal?
The actions of this Government stand in stark contrast to those of the Scottish Government, who have reached out to EU nationals and set out a clear action, including setting up an expert group; who have provided £100 million- worth of economic stimulus, with more to come tomorrow and a programme for government. The Secretary of State was responsible for a leave campaign that had no plans—zero, zilch. That is in stark contrast to the 670-page White Paper that the Scottish Government produced ahead of the independence referendum. Does the right hon. Gentleman regret not having any more plans, especially now that the Prime Minister is slapping down some of the leave campaign’s ideas and the Foreign Secretary is referring to access to the single market? Does the Secretary of State regret that blank piece of paper?
However, my right hon. and learned Friend then moved on to the issue of immigration. I do not think that when people are concerned about immigration, it is necessarily xenophobia. Economic, social and other pressures lead to people’s concern about the issue. Nor do I think that it is a simple trade-off. I do not think that an immigration control system that suits our country is necessarily one that will preclude a good trade relationship with the European Union. Trade relationships are beneficial to both sides, and we should not need to make a policy purchase in order to secure such a relationship. So, while I agree with my right hon. and learned Friend’s original proposal, I do not agree with his conclusion.
Let me ask the Secretary of State just one specific question. Has his Department even considered what the home affairs issues will be in the negotiations, and has he decided whether or not Britain will be staying in Europol? That decision will have to be made this year, not in many years to come. Has he decided whether we will be in Europol, yes or no?
Let me deal with just one issue that the right hon. Gentleman raised: the points-based immigration system. What the Prime Minister said in China was very clear. Her concern was that a points-based system was too open-ended and did not actually control the number of people coming to the United Kingdom, and she therefore wanted something that sounded as if it would be more rigorous, not less.
The right hon. Gentleman talks about the sovereignty of Parliament. Will he give this Parliament more of a say on the deal that is done? Do his Government intend to give the British people a say on the deal when it is finally done?
As for employment rights, a large component of the people who voted to leave the European Union could be characterised as the British industrial working class. It is no part of my brief to undermine their rights—full stop.
My right hon. Friend has a good point on the customs union. Membership of a customs union puts restrictions of varying degrees on what countries can do outside. It would put restrictions on what my right hon. Friend the Secretary of State for International Trade is doing, so we have to look at the matter carefully. There is a range of different types of customs union, but that is exactly the sort of decision that we will resolve before we trigger article 50.
“Our access to the single market of 500 million people reduces costs for Scottish businesses by removing barriers to an export market, currently worth around £11.6 billion.”
What evaluation has the Secretary of State made of the impact of exiting the UK on the Scottish economy?
As for the title of my Department, I do not know whether my hon. Friend was the parliamentary wag who called it “Department X”, but thank you very much.
Having said that, the Prime Minister and I have both said in terms that we want to provide a generous guarantee to European Union citizens who are already in this country. I am confident that that can be delivered as long as we get proper, civilised treatment for British citizens abroad—who are, after all, our responsibility too.
I want to press the Secretary of State on his answer to my hon. Friend the Member for Wallasey (Ms Eagle). He made a big play in his statement of his ambition, which I share, to restore parliamentary sovereignty. Will he therefore give this House a vote on the final package for Brexit, whenever and however it is finally negotiated?
In terms of the position with respect to parliamentary approval, I suspect that a great deal of things will be brought before the House during the course of the negotiation, not just at the end. There will be plenty of opportunity both to speak about them and to vote on them.
To that end, I will also do what I can to make this process as open as possible. Let me say to the hon. Gentleman that this is a negotiation, and you do not play cards with all of them turned face up, as he will understand. Nevertheless, I will do what I can to make the process as open as possible. He said that what I have said today has been rather general, but I have been talking about the process. The Department has 180 people —it has quadrupled during August—and this is a fast-developing process. I mean it to be open, and I asked for a statement on the first day back so that the process can be open to everybody in the House. That is what we will do, and perhaps we will start with him.
“to endorse the start of negotiations”
as
“a defeat for the terms of exit, after lengthy negotiations…could leave the UK in…limbo”.
The hon. Member for South Down (Ms Ritchie), who is no longer in her place, posed a very interesting question that requires further investigation on our relationship with Ireland. It is not just an economic relationship, but a social one and a familiar, reciprocal one across the length and breadth of this Chamber and the Dáil Éireann. After the Secretary of State meets the Foreign Minister of Ireland this week in Dublin, and possibly the Taoiseach, will he return to the Floor of the House and make a statement on their discussions in relation not only to the common travel area, but to the Ireland Act 1949, so that those relationships can continue when this part of the United Kingdom leaves the European Union?
The fishing industry, not least in Scotland, was once a proud and large industry envied around the world. Many of my fishermen constituents see leaving the EU as a huge opportunity. Will he reassure them, other fishermen and potential new fishermen around the United Kingdom that fishing will be very high on his list of priorities, including potentially taking the 200-mile limit back?
On access to markets, I am absolutely on the side of those FSB members. That is what we will seek to do, but we must take on board the fact that the sheer level of immigration into the UK from the European Union has caused social issues, and perhaps economic issues for low-paid workers and the like. We must balance that against the corporate interests—that is what we will do—and try to get the outcome that is best for Britain.
To return to the hon. Lady’s point, young people may of course feel at this point that their views did not win the day. I am afraid that that is part of democracy. It is our job to ensure they gain from the outcome of that decision.
It was not just places such as Lincolnshire that delivered the leave result; it was the Labour heartlands in the north and the midlands. My right hon. Friend knows those heartlands very well indeed. Does he think it would have been helpful if the official Labour spokesman—if there is such a thing—had made it absolutely clear that the people had spoken and that all Conservative and Labour Members will deliver this democratic result?
“those with the big fields do the sheep, and those with the hill farms do the butterflies. That would make a lot more sense for the UK and it’s perfectly possible but only if we leave the EU”.
What reassurances can the right hon. Gentleman give the farming communities that are the lifeblood of rural Wales that subsidies will continue to the more-challenging-to-farm areas, so we are not turned into a big butterfly park?
In respect of the discussions with the Scottish Government and other devolved Administrations, let me say this first up. There is a joint ministerial committee, in which the First Minister, or her nominee—whichever she wishes—has been offered a place, and that will be the process whereby we will look at all proposals. The Prime Minister has said that we will look at all proposals. I have to tell the hon. Gentleman upfront that—as I said to the First Minister when I spoke to her about it—I really cannot see how his proposed arrangement could be made to work, but we will look at it.
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